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Guys, I hear this NY State Gains Taxes is due at closing if you are an out of state seller, vs only paying it when you file annual taxes if you're a state resident. This is a pretty significant tax at
8.82% of gains.
IRC Section 121 seems to protect you if it's a primary residence, however it seems to not apply if you are an out of state seller. Can that be right?
I had a lawyer tell me today that if there are two owners of a property and one lives in state, and the other is out of state, then only one would get the IRC Section 121 capital gains exemption as well as exemption from the NY State Gains Tax, but the other wouldn't?
That can't be right? I thought that it didn't matter what state you were a resident of, the IRC Section 121 applies equally to all. Thoughts?
8.82% of gains.
IRC Section 121 seems to protect you if it's a primary residence, however it seems to not apply if you are an out of state seller. Can that be right?
I had a lawyer tell me today that if there are two owners of a property and one lives in state, and the other is out of state, then only one would get the IRC Section 121 capital gains exemption as well as exemption from the NY State Gains Tax, but the other wouldn't?
That can't be right? I thought that it didn't matter what state you were a resident of, the IRC Section 121 applies equally to all. Thoughts?
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