How long do uhave to own ur primary residence...

Are you talking about New York or London?
Shouldnt this be in the business/investment forum???

 

i believe you have to be there 2 years to pay long term

 

if you own any capital asset for over 12 months, it will qualify for long term cap gains. As for primary residents you have an exclusion that is available only once every 2 years, meaning you have to be in the house for at least 2 years, you can exclude the first $500,000 of capital gain if you are married and filing jointly.

 

$250K for single.

 

I am struggeling with this right now with a rental in town. If I change it to my primary residence for two years, I can sell it and pull up to $250K tax free, or about $1800 a month for the 24 months I am there.

 

I believe you must live in the house two out of the last five years. So, it dosen't have to be the last three years. If this was a primary residence before you rented it, this might work to your advantage.

 

This is correct...I exercised this option on one of my rental houses in San Francisco. The rule is that the property has to have been your primary residence 2 of the past 5 years. I lived in it in 1999,2000 and rented it out in 2001, 2002, and 2003. Sold it and paid no capital gains on the first $250k in profit (limit is $250k if you are single, $500k if you are married, filing jointly.) The gain calculation is after paying real estate agent fees so it is a pretty sweet tax deal.

 

Yes it is, except if you have already reached the $500K gain and don't want to move. So do you do the fiscally responsible thing and move to adjust your basis or take the cap. gain hit when you do eventually move?.....what to do... what to do?

 

I'm assuming that you are saying that you already took the gain exemption within the past 2 years already? If it has been less than 12 months, you will pay your ordinary tax rate for the additional capital gains, if it is between 12 months and a year, you will pay 15% capital gains tax.

I don't understand your questions about moving to adjust your basis....the basis for the home you are considering selling doesn't change whether you live in or not. Unless you are going to move in and spend $ on improvements. Maybe I am not understanding your question?

 

Reread it......... They were not questions to you. I was just thinking "out loud" and stating that the market value for my house has put me in this position. I fall within the guidelines of the gain exemption. I just have a decision to make........... Thanks for your response......... What I meant by "adjusting basis" (using the terms loosely), is that if I purchased another home now, I would step up the "basis" to the purchase price.

 

Aaaaahhh. Thinking out loud. I get it . I was thinking "dang, if he's already used up the full exemption already and still has more to gain...that's not a bad place to be in!"

 

There are worse places, I agree..........