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Qualify for capital gains tax exemption more than once?

Posted on: 17th Dec, 2006 08:02 pm
Is it possible to take advantage of the capital gain tax exemption of $250,000 for more than once? Supposing that one buys it in 1999 and sells in 2002 for $200,000 gains. And then again buys a property in 2003 and sells it in 2006 for another 200,000 gains?
Yeah, you can very well get the tax exemption more than once.
Posted on: 17th Dec, 2006 11:20 pm
But my knowldege says that one cannot qualify for the exemption more than once in every 2 years. So, if you have already got an exemption from capital gains tax within the past 2 years, then you will have to pay taxes on your gains.
Posted on: 17th Dec, 2006 11:26 pm
Hi Stark,

In order to exclude gain and avoid paying capital gains taxes, a taxpayer must have owned and used the property sold as his primary residence for 2 of the 5 years before the sale. The time period of owning and using the property may not be the same but it has to be included within 5 years prior to the sale.

The 2 years may comprise of 24 full months or 730 days. Short absences such as vacations are counted as period of use of the property but long breaks are not. The tax payer should not have excluded gain on another home sold during the 2 years before the current sale of property.

Thanks,

Caron.
Posted on: 18th Dec, 2006 04:22 am
I am 85 years old and purchased property many years ago...can I be exempted from paying capital gains taxes if I sell the property?
Posted on: 23rd Sep, 2008 06:36 am
Hi Rick G!

Welcome to MortgageFit Forums!

If the house is your principal place of residence, then it is exempted from the CGT or the Capital Gains Tax.

Hope this will help you.

Thanks,

Jerry
Posted on: 24th Sep, 2008 01:43 am
In 2002 I had a house with 70 aceaes and sold off the house with 10 acr now Iwant to sell the 60 acr how can I get around capital gains pay down on primary home and buy other vacant land
Posted on: 25th Jan, 2010 08:49 am
Hi Darron,

As far as I'm aware of, you will have to pay capital gains tax if you sell your land at a profit. You can have a profit of $250,000 from the sale of your property and still owe no capital gains tax, if the property sold was used as your primary residence. But in your case, you cannot claim your vacant land as your primary residence. Hence, you will be subject to certain amount of tax, depending on the amount of profit you make. Consult with an accountant or a tax advisor to know if you can claim any other type of exemption from capital gains taxes.
Posted on: 27th Jan, 2010 02:01 am
Can I claim the per-rational share of the exemption on the unit I occupied as my primary residence for the last 3 years, but the property is a Fourplex (4 units) I owned for the past 7 years and renting the other 3 units?
Posted on: 28th Feb, 2010 04:41 am
Hi Star,

You should be able to claim the capital gains exemption since you have occupied the property as your primary residence. The exemption, as far as I know, applies to 1-4 unit properties. Thus, you should be able to claim the exemption on your fourplex, provided you used it as your principal place of residence.
Posted on: 02nd Mar, 2010 11:34 pm
I inherited a house and the lot it was on in 2005. I rented the house until Hurricaine Ike destroyed the house in Sept. 2008. I sold the lot in Mar 2009 for $4350 more than the appraised value of the lot per property tax bill. Is my gain capital or ordinary?
Posted on: 04th Apr, 2010 05:51 am
To Guest,

I've replied to a similar query at http://www.mortgagefit.com/budgeting-finance/lot-sale-capitalgains.html#158809 . I hope it helps you. But in any case, if you have more queries do not hesitate to ask.
Posted on: 05th Apr, 2010 03:23 am
i have just gone through a property settlement and sold the land we held in joint names, we purchased this land in 2003 and in the last 4 years my ex-partner has made no payments, all such payments have been made by myself from my account including rates,water rates, and all outgoings, from the sale she is going to get all moneys made from this sale, after payout of loan and solicitors fees and so on, can i claim all interest on my side for all payments made from my account including rates and up keep. as i wll not receive any moey from the proceeds of this land. many thanks
Posted on: 28th Apr, 2010 05:58 pm
"...sold the land we held in joint names......can i claim all interest on my side.....i wll not receive any moey from the proceeds of this land."
If the land was in joint names, you had ownership rights to the property. Did you give up your rights? In case you deliberately gave up your rights to the property, you cannot claim any interest and you will not receive any money from the sale proceeds.
Posted on: 28th Apr, 2010 10:00 pm
pretty tough to cliam income or interest rebates off property you don't own, no?
Posted on: 29th Apr, 2010 05:20 pm
we gifted our son 40 acres of land 5 years ago, he built a home on it and now had to go to prison for 5 years, he gifted us back the land and home along with a morgage, we had to sell our home took over the morgage, and now sold 10 acres of that land do we have to pay capital gains on that piece of property
Posted on: 23rd Feb, 2011 08:42 am
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