how to qualify for tax exemptions on home sale?

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nathan

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PostPosted: Fri Dec 15, 2006 10:41 pm    Post subject: how to qualify for tax exemptions on home sale?

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?
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Mac_7

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PostPosted: Sat Dec 16, 2006 12:00 am    Post subject:

Don't know much about this, but you need to own your home as the primary residence prior to the sale.
Icon Mini Profile Samantha
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PostPosted: Sat Dec 16, 2006 12:16 am    Post subject: RE: how second home qualify for capital gains tax exemption

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

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PostPosted: 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

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PostPosted: Sun Dec 17, 2006 5:47 am    Post subject: RE: qualify for 1031 exchange benefits

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.
millie

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PostPosted: Sat Aug 08, 2009 2:26 am    Post subject: tax exempt

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?
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PostPosted: 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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