Tax Credit for Seller by Edith Lank on Creators.com

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Title and Deed Dear Edith: My husband and I recently paid off our home mortgage. Only my name is on the deed. I would like both of our names to appear on the title to the house, so that in the event of my death, my husband would clearly have ownership of the …Read more. Making Lots on the Sale Dear Mrs. Lank: I've lived in my house for 32 years and want to sell this year. I am widowed and understand that I will have $250,000 that will not be taxed from the proceeds. Am I required to pay capital gains on a portion of the remaining monies? …Read more. Can't Kick Tenants Out Mrs. Lank: I am interested in buying a condo that is currently rented out. The seller says that the lease isn't up until for seven months and therefore I couldn't move in until then. If I bought this condo, would I be forced to become a landlord? Or …Read more. Did He Overpay? Dear Edith: I bought a house this summer, and in light of the National Association of Realtors' admission that they've been overstating home sales since 2007, I'm wondering if that faulty data may have made me overpay for my house. — L. Answer:…Read more.

Tax Credit for Seller

Dear Edith: I recently listed my house. I was wondering if I sell it within the allotted time frame, will I be entitled to the $6,500 at tax time?

I bought it six years ago with my ex. After he left four years ago, we put it in my name alone. I think I am entitled to it. — C.

Answer: You don't mention buying a replacement home, and of course, the repeat buyer tax credit is for the purchase of a new principal residence. If that's what you're doing, I'd say you qualify because you have been an owner of the same home for more than five consecutive years out of the past eight.

But it sounds as if you might be expecting a tax credit for sellers. There's no such thing. In fact, there's no requirement that the current home be sold at all. It could be kept, for instance, as rental property or a vacation home.

TIME SHARES YET AGAIN

Ms. Lank: My husband and I have two time shares we want to sell. We receive phone calls to sell them, but they want money upfront. We did that twice and nothing happened, plus we did not hear a word from the companies again. Can you tell us the best way? Should we go through a Realtor? — K.C.

Answer: If you'd been reading this column earlier, you'd never have given anyone upfront money to "sell" your time shares.

Let's assume you don't have mortgages on the properties. If you are ready to just get out from under, here are a few ways: Ask the developer or management if they'll take them back. Place ads on Craigslist and local papers there, offering them for free. Ask your lawyer what might happen if you just stop paying the fees and walk away.

If you still hope to get some money from a sale, then yes, you can talk to real estate brokers out there. Even if the agents think they could be sold, though, you'd have to offer a large commission to make it worth the time and effort.

IS IT SOLD OR NOT

Dear Edith: After the house we're selling passed the buyers' inspection period, we thought we were all set. Then the buyers' agent sent a letter saying their insurance company declared our roof uninsurable.

This was after two inspections on their part, which revealed nothing wrong with the roof.

Since there was an amendment in the contract that the roof must be insurable, we assumed that made the contract null and void. We took down the sold sign and asked for a termination agreement. Instead, they sent a different inspector from a second insurance company. We suspect they simply want to manipulate us into replacing the roof.

How long do they have a right to shop around? This could go on for weeks, with a closing date fast approaching and putting us in limbo. — e-mail

Answer: First decide whether you'd replace the roof if you had to, or would you rather get out of this contract and take a chance on running into the same problem with the next buyer?

Then consult your attorney, who can review the documents and tell you where you stand. If you want to insist on that closing date or cancel the deal, ask about making time of the essence.

Meanwhile, there's nothing to stop you from showing your house and accepting a backup offer that would take effect only if the current one fell through.

SOLD WITH HIS PARENTS

Dear Edith: Several years ago, my parents signed over their home to me with the "life use" clause. Just recently, they went into an assisted living apartment and we put the property on the market. It sold and now I am unsure about the tax liability. Because of the "life use" clause, I could not sell the property myself. I did receive some of the sale proceeds, but I gave my parents some, as well. — e-mail

Answer: I am not a CPA or a tax attorney, and I don't know exactly what that "life use" was. But if it was life tenancy, your folks were still the owners while they lived. That would explain why they were the ones who officially sold it, with you simply releasing your future claim.

They can use the home sellers' tax exclusion on their share of the profit. The IRS has tables based on their life expectancy, telling what percentage of the sale price was due to you as the eventual owner. The portion of your share that represents profit is taxable.

Edith Lank will respond personally to any questions sent to her at 240 Hemingway Drive, Rochester, NY 14620 (please include a stamped return envelope), or readers may e-mail her at ehlank@aol.com.