Unmarried couple can expect home sale profit

Q: My boyfriend and I are selling the home we have owned for six years. Prices in our area have dropped a lot, but we will still make about a $125,000 profit each from the sale because we bought it when prices started going up. How will our profit be taxed? Will we be punished because we are not married and file our tax returns separately?

A: There’s no reason to worry. Internal Revenue Code 121 allows married couples who file their taxes together to keep up to $500,000 in their home-sale profit tax-free, provided that they have lived in the house for at least two of the previous five years. Single tax-filers who meet the two-out-of-five-years test can each keep $250,000 away from the clutches of the IRS.

The $125,000 profit falls well below either of those limits, so you probably won’t owe any federal taxes.

Talk to an accountant for more details. Also get a free copy of IRS Publication 523, “Selling Your Home,” by calling the agency’s toll-free hotline (800-829-3676) or by downloading it on your computer from irs.gov.

The wood front door to my house is driving me crazy because it sticks (and is almost impossible to open or close) when it’s cold, but then shrinks when it’s hot and lets out all the cool air from my air-conditioning unit. What gives?

The problems might be because the home is aging and settling into its foundation. But more than likely, the weather is the culprit.

When it’s cold, the damp air tends to make wood expand — and thus makes a door more difficult to open or close because it starts rubbing against its doorframe. When it’s hot, the wood shrinks and the doors become easier to operate: That’s good for you, but not so good for your utility bills, because much of the cold air generated from the AC unit literally goes out the door.

Many such problems can be solved by sanding, painting and applying a weather-resistant finish to the door. Cover all six sides: Front, back, top and bottom, latch side and hinge side.

Your local utility company may have more information. Many utilities offer free “energy audits” — or free weatherstripping and minor repairs — that can save hundreds of dollars each year.

We recently retired, and took a driving tour across the U.S. In New Mexico, we went through a town called Truth or Consequences, the same name as the old radio and TV show. Are they related?

Yes. Located near the southern edge of New Mexico, the town was called Hot Springs until 1950, when the host of the popular Truth or Consequences game show offered to broadcast some of its programs from the first town that would rename their community after the show. Though local politicians’ dreams of turning the area into another Hollywood never materialized, its luxurious spas and natural amenities now lure thousands of visitors every year.

Although the little town on the Rio Grande has a funny name, there are some that are equally humorous. For example, you would likely have lots of fun on a Friday night at Yeehaw Junction in Central Florida, but probably wouldn’t want to drive several hours north to finish the weekend in Boring, Md. Maryland is also home of communities named Accident, Unicorn and Snow Hill (the last of which has virtually no hills and often very little snow).

How would you like to be a resident of Ding Dong, Texas, or Nimrod, Minn.? Are there lots of nosey neighbors in Booger Mountain, N.C., a bunch of spendthrifts in Tightwad, Mo., or some particularly angry folks in Squabbletown, Calif.?

The state of Virginia had a massive ad campaign that called it “the state for lovers,” though it probably wasn’t based on its little town called Assawoman (which happens to be down the road from Superior Bottom, W.Va.).

When I toured the South several years ago, I didn’t stop to eat in Greasy Corner, Ark., but had a nice cup of java in Hot Coffee, Miss. And I’ll bet the food is really good in Lickskillet, Ohio; Two Egg, Fla.; and Sandwich, N.H.

After making such terrible puns, I’m sure I’ll go to Hell For Certain — the name of a rugged patch of land in the unincorporated part of Leslie County, Ky.