I live in PA.
2006-06-21 11:26:49 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
To qualify for this exemption you must have lived the property as your personal residence for at least 24 month (2 yrs) of the last 5 yrs before the sale date. You will be entitle to either $250K or $500.K depending on your marital status. I believe even individual owners, even if not married, assuming they meet the above qualifications are entitle to the exemption---in fact I am pretty sure (Consult your tax attorney nevertheless).
Note: 1031 exchange applies only to investment property, i.e., rentals, and not to personal real estate property. Always consult your tax man!!!!!!!!!!! Best of luck!
Where one lives is of no consequence when it comes to federal income tax law unless an Indian reservation...where some federal tax laws may vary.
2006-06-21 13:29:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You can defer up to $250K or $500K if you are a couple if you live in a house for 2 out of the last 5 years before you sell (this is your primary residence). You have to pay capital gains on anything about $500K.
You can do 1031 transfer (remember to use an intermediary and don't sell before you have another house to buy) to defer gains. At some point you will have to pay for them anyway.
Gains are taxed the same way as any other capital gain - I believe if you hold the property for more than a year, then 15% federal. I think it can go up to 36% for federal on short term (less than a year) gains. I don't know about state taxes.
2006-06-21 11:34:26 · answer #2 · answered by Mr. PhD 6 · 0⤊ 0⤋
2 years
2006-06-21 11:29:44 · answer #3 · answered by denises1955 1 · 0⤊ 0⤋
It depends on the appreciation of your home. My realtor told me to live in my new home for five years before I sold it. The housing market can change quickly. Much of the value may be determined by the location. If you buy a more expensive home you may not have to pay the tax or capital gains. Check about your laws. I live in another state.
2006-06-21 11:32:03 · answer #4 · answered by Dianne T 3 · 0⤊ 0⤋
2 years i believe to avoid capital gains tax
2006-06-21 11:29:51 · answer #5 · answered by sonione 2 · 0⤊ 0⤋
0 days 0 years. as time goes by, your house will only increase in value so the longer the you wait, the more money you'll make and the more taxes you will pay.
2006-06-21 11:29:44 · answer #6 · answered by bbq 6 · 0⤊ 0⤋
I believe that it is two years. Before that time the money is called capital gain.
2006-06-28 11:07:51 · answer #7 · answered by alpha & omega 6 · 0⤊ 0⤋
http://www.lendermark.com/capital_gains_tax.htm
2006-06-21 11:38:38 · answer #8 · answered by lendermark1 2 · 0⤊ 0⤋