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Guest

I have a second residence which is likely to be sold after some time. How do I qualify for capital gains tax exemption or tax-deferred exchange benefits?

Guest

Don't know much about this, but you need to own your home as the primary residence prior to the sale.

Samantha

Hi Nathan,

There is a capital gains tax exemption on the sale of your principal residence up to a profit of $250,000 if you are single tax filer. The exemption limit extends to $500,000 for married people filing joint tax return.

In order to qualify for the exemption, you need to occupy your second home as the primary residence for at least 2 years out of the total 5 years prior to the sale of house.

You can refer to our previous discussion on Capital Gains Tax Exemption for a better idea on this issue.

Hope you will be benefited from this infromation.

God bless you.

Samantha

mcole · Posted: Sat Dec 16, 2006 7:04 am Post subject:

Greetings Nathan,

If your second home can be treated as an investment property, you may be able to qualify for a 1031 exchange. You should probably talk to your CPA or accountant to determine what needs to be done and if this will work for you.

Cool

Caron

Hi Nathan,

You can qualify for tax-deferred 1031 Exchange benefits only if the property on sale is rental and will be traded for another rental property of equal or higher cost and equity.

Thanks,

Caron.

Guest

i have a second home, if i apply to qualify for tax exempt. what is the guaranty to get that tax exempt? how to qualife besides living there for 2yrs?

jameshogg · Posted: Wed Aug 12, 2009 8:41 pm Post subject:

Hi millie,

You should refer to Samantha's post above in order to know how you can qualify for tax exemptions on your second home.

Thanks

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how to qualify for tax exemptions on home sale?