* * * * *
                                        
                            Beware the Ides of April
                                        
I started my taxes today, which means this year I'm starting early. 

Ahem.

And every year, like I have since … oh … 1998 or there abouts, I sit down and
start filling out the dreaded **1040**. Yup, because of mortgages, stocks,
self-employment and other fun stuff, I get the fun of doing the long form,
with schedules and everything.

Fun, fun, fun.

I suppose I could have my accountant do all this grunt work for me (and
that's what it is really—tedious; it's not hard if you can keep awake from
reading the dreadfully dry government prose) but that would mean I would have
to actually find an accountant. And, like, pay an accountant.

And darn it!—it shouldn't take a highly paid specialist to fill out a lousy
form. I'm convinced that a real tax reform will only come about when more and
more people start doing their own taxes and see just how tedious this can be.

> If you sold or exchanged your main home, **do not** report it on your tax
> return unless your gain exceeds your exclusion amount.
> 
> Generally, if you meet the two tests below, you can exclude up to $250,000
> of gain. If both you and your spouse meet these tests and you file a joint
> return, you can exclude up to $500,000 of gain (but only one spouse needs
> to meet the ownership requirement in **Test 1**).
> 
> **Test 1.** You owned and used the home as your main home for 2 years or
> more during the 5-year period ending on the date you sold or exchanged your
> home.
> 
> **Test 2.** You have not sold or exchanged another main home during the 2-
> year period ending on the date of the sale or exchange of your home.
> 
> See Pub. 523 [1] for details, including how to report any taxable gain if:
> 
> * You do not meet one of he above two tests,
> * You (or your spouse if married) used any part of the home for busiess or
>   rental purposes after May 6, 1997, or
> * You gain exceeds your exclusion amount.
> 

“2002 Instructions for Schedule D, Capital Gains and Losses [2]”

But with the tedium comes the few gems in the tax code—this particular bit
from Schedule D [3] means that the money I received upon selling Condo Conner
[4] is

TAX FREE!

Woo hoo! Doing the Happy Dance!

When this is all over, the Federal Government may end up owing me money!

And that, generally speaking, is such a nice feeling.

[1] http://www.irs.gov/pub/irs-pdf/p523.pdf
[2] http://www.irs.gov/pub/irs-pdf/i1040sd.pdf
[3] http://www.irs.gov/pub/irs-pdf/f1040sd.pdf
[4] gopher://gopher.conman.org/0Phlog:2002/08/08.1

Email Sean Conner at sean@conman.org

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