I owned two houses, the first was my main residence which I have now sold. The second was let out to lodgers but I am now living in it but want to sell up as soon as possible.
2006-11-11 03:05:18 · 9 answers · asked by charlotte e 3 in Business & Finance ➔ Renting & Real Estate
I am in the UK by the way, but thanks to everyone so far...
2006-11-11 03:19:41 · update #1
I think it depends on which country you live in but in the uk its six months (trust me i work in the construction industry)
2006-11-11 06:06:39 · answer #1 · answered by Chirpy chippy 2 · 0⤊ 0⤋
Slider is correct. To avoid capital gains, you must live in it for 2 of the last 5 years. There are other requirements, such as sale price.
The amount you will pay in capital gains is the sales price, minus your Basis, which is: What you paid for it plus capital improvements, minus any depreciation you have taken.
If the amount is considerable and you cannot otherwise avoid the taxes, ask your attorney about a "1031 exchange". This will require you to be buying a "like kind" property, so if it's now your home but hasn't been long enough to avoid the capital gains, you sell and turn the proceeds (total proceeds, NOT just the gain) into another home. There are restrictions, and it requires hiring a "qualified intermediary", which may cost about 500 to 1000.
2006-11-11 03:17:14 · answer #2 · answered by open4one 7 · 0⤊ 0⤋
about 2-3 years
2006-11-11 03:11:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you are going to live in it yourself and tell the taxman it is your main residence the minimum is 6 months but it can be hard to prove. It is best to live in it the property for at least 12 months. If you are still unsure it would be best to ask a tax consultant.
2006-11-11 03:12:26 · answer #4 · answered by patsy 5 · 0⤊ 0⤋
Everybody has a simple answer to that question but your question is not a simple one. You need to look at all of the intricacies of taxation before deciding what to do. Here is where you need to go to get your answers:
IRS: Selling your Home Publication: http://www.irs.gov/publications/p523/index.html and http://www.irs.gov/publications/p523/ar02.html
IRS: Home Sale Exclusion rules, publication: http://www.irs.gov/newsroom/article/0,,id=105042,00.html
IRS: Real & Personal Property Sales: http://www.ustreas.gov/auctions/irs/
IRS: Gain and losses on real property:
http://www.irs.gov/publications/p544/ch01.html
If you wish to conduct a more detailed free research on your inquiry you should go to our educational real estate research page http://www.realestateformnm.com/ResearchLink.html there you will find more links for real estate related research than any other site.
Buena Suerte
2006-11-11 03:14:12 · answer #5 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
I think that you could probably avoid paying CGT if you roll the money over into another business/ property - might be worth checking this out - ask your accountant...
2006-11-11 03:25:03 · answer #6 · answered by ticket2ride 2 · 0⤊ 0⤋
you're able to desire to stay on your crucial place of living 2 out of the previous 5 years on the factor once you sell. yet this belongings must be your crucial place of living, not an investment belongings you purchase to lease out.
2016-11-23 15:36:56 · answer #7 · answered by ? 4 · 0⤊ 0⤋
Two years unless you are forced to move to find employment in another location in another state...or far away.
2006-11-11 03:13:23 · answer #8 · answered by Anonymous · 0⤊ 0⤋
The answer is two years.
2006-11-11 03:09:58 · answer #9 · answered by slider 2 · 1⤊ 0⤋