[quote=bearishgurl]Thanks, flu. Your article explains it in layman’s terms, rather than the IRS gobbledygook I was trying to “read.” I like the idea of being able to spread the taxes out over two years, too. I think I’m still going to have to consult my tax person, tho :-{[/quote]

flu explained it real well. Definitely consult your tax pro since there’s also Social Security to consider as well as rental income, pensions if you have them which could be a big chunk of taxes down the road.

In the simplest case for a single guy/gal with say $0 income in 1 year, it’s pretty obvious you will have some options due to the standard deduction and exemption to minimize taxes.

Spreading it over 2010 and 2011 has the added risk of tax rates being higher in 2011 (Bush tax cuts expire this year)…

Please consult your tax adviser for your specific situation.