Stop the clock clause saves you tons of money when selling your home and capital gains.
My ex-husband and I bought her home in California and less than a year later we had PCS orders to Kentucky. They kept extending his contract. Therefore it became a rental property for us. We sold our rental home just before Covid. For $805k. We were supposed to pay over $82,000 in taxes after all the commissions and fees such. However, after much digging, I found “ Stop The Clock” IRS publication 523. We ended up having to pay $27,000. Since we were divorcing, we ended up paying only just over $14,000 each. https://militarymoneymanual.com/tax-considerations-military-selling-your-home/
Posted May 11, 2025, 4:41 PM UTC
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