Posted on: 14th Aug, 2009 08:06 pm
If we bought our home for 675,000 and sell it for 600,000-there are clearly no capital gains. If we then want to sell our second home- if we live in it for 2 of the next five years and sell it for 300,000 (it was given to us.) Do we have to pay tax on the 300,000??
Hi dwresinski,
I think you are speaking about the $250,000/$500,000 home sale exclusion which came into effect in 1997. To qualify for this home sale exclusion, you will have to occupy and own the property for at least 2 years before you sell it. If you occupy the property as your primary residence for 2 years and then sell it off, then I don't think you would have to pay taxes. However, you can contact a tax consultant and take his opinion in this regard.
I think you are speaking about the $250,000/$500,000 home sale exclusion which came into effect in 1997. To qualify for this home sale exclusion, you will have to occupy and own the property for at least 2 years before you sell it. If you occupy the property as your primary residence for 2 years and then sell it off, then I don't think you would have to pay taxes. However, you can contact a tax consultant and take his opinion in this regard.
dwresinski
Welcoem to the forum
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
Since you stayed in yoru second home for 2 years out of 5years prior to the sale fo the property, you do qualify for capital gain tax excempltion
Good luck and feel free to ask
Welcoem to the forum
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
Since you stayed in yoru second home for 2 years out of 5years prior to the sale fo the property, you do qualify for capital gain tax excempltion
Good luck and feel free to ask