Legal Question in Tax Law in Maryland

Tax and Real Estate Profit

I am a co-owner of a residential home and I am being bought out by the other owner. (I have never owned property previous to the purchase of the home). I am concerned about the tax laws regarding the profit which I will receive. Will it be beneficial to reinvest the profit into another piece of real estate immediately? Will I be penalized if I wait a certain amount of time before I reinvest? Are mutual funds tax-wise with the profits from property?


Asked on 3/19/00, 9:22 pm

1 Answer from Attorneys
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: Tax and Real Estate Profit

If you have been living in the home as your residence for the past 2 years, you may be able to exclude up to $250,000 of the gain. You should contact a tax lawyer in your area.

Ronald J. Cappuccio, J.D., LL.M.(Tax)

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Answered on 3/25/00, 6:31 pm


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