| Author |
Message |
|
|
nathan
Guest
|
 Posted: 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?
_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant |
|
|
Mac_7
Guest
|
| Posted: 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. |
|
|
 Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1602
Location: MASSACHUSETTS
149.70 Dollars($)
|
| Posted: 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 $500,000 for married people filing joint tax return.
In order to qualify for the exemption, you need to occupy your second home as the primary residence for at least 2 years out of the total 5 years prior to the sale of house.
You can refer to our previous discussion on Capital Gains Tax Exemption for a better idea on this issue.
Hope you will be benefited from this infromation.
God bless you.
Samantha
_________________
Know how to compare lenders with mortgage booklet |
|
|
mcole
Community Experts
Joined: 11 Oct 2006
Posts: 53
18.36 Dollars($)
|
| 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.
_________________
Loans: Investors, Residential, Commercial – All States |
|
|
Caron
Moderator
Joined: 19 Jul 2005
Posts: 1562
Location: florida
266.58 Dollars($)
|
| Posted: Sun Dec 17, 2006 5:47 am Post subject: RE: qualify for 1031 exchange benefits |
|
|
Hi Nathan,
You can qualify for tax-deferred 1031 Exchange benefits only if the property on sale is rental and will be traded for another rental property of equal or higher cost and equity.
Thanks,
Caron. |
|
|
millie
Guest
|
| Posted: Sat Aug 08, 2009 2:26 am Post subject: tax exempt |
|
|
| i have a second home, if i apply to qualify for tax exempt. what is the guaranty to get that tax exempt? how to qualife besides living there for 2yrs? |
|
|
jameshogg
Joined: 20 Dec 2005
Posts: 4291
Location: nevada
509.34 Dollars($)
|
| 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 |
|
|
