2006-11-06 14:55:11 · 3 answers · asked by bon_jobe 2 in Business & Finance ➔ Renting & Real Estate
Account for every expense you can think of...too late for the 1031 exchange, has to be done in advance. If it's your primary residence and you've lived in it for 2 years, you're exempt as long as you're purchasing another residence equal or greater value. Really there's nothing more than that but suck it up and pay it. It sucks, but that's how the system works. Sorry. Wish I could give you more than that. Get the book "Real Esate Tax Avoidance" by John T. Reed at www.johntreed.com
2006-11-06 18:20:19 · answer #1 · answered by lefty 2 · 0⤊ 0⤋
If you live in the US and you have lived in the house greater than 2 years (day for day) in the last five years, you owe $0 capital gains. You are exempt for up to $250,000 single and $500,000 married.
There are a few other stipulations, but not you should check IRS.gov for complete information.
2006-11-07 00:25:32 · answer #2 · answered by gary s 2 · 0⤊ 0⤋
Ask the lawyer helping you on the transaction about a 1031 exchange. If you're going to sell one investment and buy another, it might be worthwhile. It'll cost as much as 1k more to do it, but your tax avoidance would be about 4k.
2006-11-07 00:44:07 · answer #3 · answered by open4one 7 · 0⤊ 0⤋