Posted on: 08th Apr, 2007 04:49 pm
My wife and I own 2 houses together. If we quit claim one to her and one to me, would it be considered a primary home if either of us sold our home for tax purposes?
thanks,
thanks,
Welcome Dennis,
A primary residence is a property where you live on a full time basis. Now, if you quitclaim a property owned by you and your wife to you only, then the property will be considered as primary residence if you occupy it most of the time than you stay in some other property. Therefore, both of you will have to pay capital gains tax on the profit resulting from the sale of the house.
A primary residence is a property where you live on a full time basis. Now, if you quitclaim a property owned by you and your wife to you only, then the property will be considered as primary residence if you occupy it most of the time than you stay in some other property. Therefore, both of you will have to pay capital gains tax on the profit resulting from the sale of the house.
Dennis,
The house you plan to sell should have been owned and lived in for 2 out of the 5 years before the sale to be called as primary residence. And the 2 years need not be continuous.
If you meet this requirement then you can utilize the capital gains tax exemption (of $250,000) that is available on the profit you make from the sale.
Miller
The house you plan to sell should have been owned and lived in for 2 out of the 5 years before the sale to be called as primary residence. And the 2 years need not be continuous.
If you meet this requirement then you can utilize the capital gains tax exemption (of $250,000) that is available on the profit you make from the sale.
Miller
"My wife and I own 2 houses together. If we quit claim one to her and one to me, would it be considered a primary home if either of us sold our home for tax purposes?
thanks,"
First you should decide which one you want to sell depending on market value of both the houses. Then check which one you had lived for a total of 2 years.
As Miller said from the point of capital gains tax exemption, the house you have lived in for a total of 2 years out of the last 5 years will be considered as your primary residence and you would be able to claim tax deduction on the profit you make from its sale.
Thanks
Blue
thanks,"
First you should decide which one you want to sell depending on market value of both the houses. Then check which one you had lived for a total of 2 years.
As Miller said from the point of capital gains tax exemption, the house you have lived in for a total of 2 years out of the last 5 years will be considered as your primary residence and you would be able to claim tax deduction on the profit you make from its sale.
Thanks
Blue