 kelmcats
Joined: 18 Apr 2009
Posts: 1
1.41 Dollars($)
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1519
Location: florida
281.04 Dollars($)
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Posted: Sun Apr 19, 2009 9:51 am Post subject:
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Hi kelmcats,
Welcome to our forums.
I must say you've managed to keep your credit score at a good level. 
You may qualify for a refinance mortgage on your rental property. But are you planning to convert it into an owner-occupied second home? Usually, one gets lower rates on mortgages meant for 2nd homes (which are owner-occupied) in comparison to non-owner occupied properties.
Under the old rules, one could convert a rental property into a primary home and qualify for capital gains tax exemption on its sale. But he needed to have stayed in it for 2 years out of the previous 5 years of the sale. However, since January 1, 2009, everyday you don't live in a home adds to the percentage of capital gains tax you'll need to pay. Moreover, capital gains are not waived on your primary residence unless it has been your primary home.
Since January 1, 2009, the percentage of time a home is not your primary residence will be used to determine how much of capital gains won't be waived. Say, if you own a home for 12 years, but have lived in it only for 6 years, then you'll need to pay tax on 1/2 of the capital gains after sale.
Good luck
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