primary home change
Is this right? That if you indicate the Primary Home was changed in year X, that is considered a sale and ESPlanner calculations will use the capital gains home sale tax break.
How do you then indicate that you did not buy a new home nor rent one. Instead, you moved into the vacation or real estate home making it now the primary home that would also get the tax break if sold 2 years later?
On the Vacation Home folder, you can indicate the original purchase price and current market value, and indicate a Change (it was sold) in year X, but there is no way to indicate that this became the primary home as of year Y giving you the tax break.
On the real estate tab you can indicate the year the property will be sold, but again there is no way to indicate that it became your primary residence as of year Y giving you the tax break.
RSS
Yes, that's considered a sale. I can't think of a work around. Dick Munroe may have a suggestion
I think the primary home change tab (indicating a sale) needs an indicator field to check "yes" that indicates you fulfill the rules to be eligible for the capital gains tax break (lived there 2 years, etc). The taxes are calculated to include this only if eligible is checked. Also add a field to indicate if the vacation or real estate property becomes the primary residence (in addition to the options to buy a new property or rent).
Here is Smart Monies calculator website on rules for the tax break: http://www.smartmoney.com/Personal-Finance/Taxes/Home-Sale-Tax-Estimator...
The real estate tab seems to need a field for original value (it has a sale date and current value) to support the above.
I've added it to the bug list as a potential enhancement. Not likely to happen soon.
Best,
Dick Munroe