Is getting married an unforeseen circumstance?
September 13, 2006
Date: Thu, 30 Mar 2006
My son bought a bachelor condo a year ago. Now he has met someone and is getting married. They are looking for a house, because the condo is too small for two people. He has made a small profit and is wondering if he will have to pay income taxes on the capital gain? Is this an "unforeseen circumstance"?
Date: Fri, 05 May 2006
There is no ruling on this point, but the IRS has been surprisingly liberal in its interpretations of "unforeseen circumstances", so your son may well fall under that exception. Also, after paying commissions and other selling expenses, he may find he doesn't have much of a gain to worry about.
We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.
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