2007-09-14 16:44:20 · 4 answers · asked by janet c 1 in Business & Finance ➔ Renting & Real Estate
Actually this is a more complicated question than you think. The rules have changed but some people are confused as to the exemptions. Last year, we has a big debate in my office regarding this same issue. You MUST consult a tax professional. Do not take chances with this much money. The experience we had last year was the client DID have to pay the captial gains. The exclusion referenced here applied to only an investor. Yes he did have to live in the home for only 2 months to qualify, however, according to the IRS (in this case) he needed to be an investor. You are entitled to a one time capital gains exclusion. ONE TIME so use it wisely. Please, you MUST consult a tax professional!!
2007-09-14 17:43:08 · answer #1 · answered by livigninchrist! 2 · 0⤊ 0⤋
If you sell your home you have are allowed $250,000 in gain without taxation providing you have lived in the home as a primary residence and have not taken advantage of this exception in the last five years. Double it for a couple if you own the house jointly. The reinvestment in a primary residence restriction was removed years ago.
2007-09-14 16:54:44 · answer #2 · answered by cleeroberts@sbcglobal.net 2 · 0⤊ 0⤋
Whenever you want. I'm pretty sure your capital gains on your residence is exempt from taxes for up to $200,000 for a single and $400 for a couple. I could be wrong on those numbers, but it is relaively high.
2007-09-14 16:51:39 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Yeah, what Rick said - as long as you've lived in it for at least 2 out of the last 5 years.
2007-09-14 16:55:39 · answer #4 · answered by teran_realtor 7 · 0⤊ 0⤋