2-5 year rule? do i have to live in the duplex or just own the duplex
i rent both sides and know i have to claim the rent, but some tell me i have to be living on one side to pay less in capital gain taxes if i live on one of the sides.they say i have to live there for at least 2 years,and i just found that out.i moved out of it after only 1 year of living there, and rented it out.can i change my primary address to my son's? he rents one half, and not charge rent all year?help me understand before it comes time to sell. thankyou
2007-01-16 10:03:37 · 1 answers · asked by karen i 1 in Business & Finance ➔ Taxes ➔ United States
got the property from my dad.it became fair mkt value at the time of his passing.it is now worth more with all the updates.is it better to live in 1/2 or sell now?
2007-01-16 15:45:37 · update #1
If you inherited the property, the capital gains taxes you'd pay on selling it would just be on the gain after you inherited it, not from the price the former owner bought it for.
The exclusion from taxes is only for property that was your main home, not for rental property. And if you were living in half and renting the other half, would get even more complex.
Your best bet would be to see a CPA (NOT H&R Block people) and ask how to handle this.
2007-01-16 15:34:14 · answer #1 · answered by Judy 7 · 1⤊ 0⤋