Legal Question in Real Estate Law in Kansas

In July 08 we moved from KS to IL due to job change and started renting in IL. We own a home in KS since 2000; we tried to sell it for six months from Aug 08 - Feb 09 as we relocated to IL. We then rented the house from April 2009 - March 2010. To our name we had all utility bills (March 09), bank info (still is) , drivers license of KS (Nov 08). Now I am offered a job in NC with relocation package. My future employer relocation person is saying that our KS home may not qualify for employer based home owner package (they will pick up the selling & purchasing closing cost and if house doesn't get sold in 6 months then they will buy it. We have 12 months to complete the relocation) since it is not our primary residence at the time of my joining date of Dec 2009. My question is do I need to relocate my family back to KS home when renters leave in March 2010 for my KS house to be qualified for employer home relocation package ? or near the start date of Dec 2009 ?.


Asked on 11/09/09, 2:59 am

1 Answer from Attorneys
Keenan Post Post Warren Lindstrom, LLP

You need to evaluate the specific terms of the relocation package offer to determine if you are able to participate. Hypotheticals are not good so lay out the facts to the employer and proceed accordingly. The other issue you should explore with your CPA is whether any gain (if at all) you have on the sale of your KS house is exempt from income taxes. Generally when you convert a personal residence to a rental, the gain from the sale thereof (if any) is taxable.

Good luck.

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Answered on 11/16/09, 5:13 pm


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