It is different in each state. In CA, there are a few determining factors with regards to capitol gains: For the home to be considered your primary residence, you have to have lived in it for at 2 out of the last 5 years. If this is the case, then as a single person, you are […]
Written on Sunday, July 6th, 2008 by vanmerrill :: 0 comments to this post
It is different in each state. In CA, there are a few determining factors with regards to capitol gains:
For the home to be considered your primary residence, you have to have lived in it for at 2 out of the last 5 years. If this is the case, then as a single person, you are exempt from capitol gains of up to $250,000 of profit and $500,000 for a married couple. If you have not lived in the house for at least two years, then you must transfer the funds to another property via a 1031 exchange in order to avoid paying taxes and finish out the 2 years in the new home. If you have lived in the home for at least 1 year, but less than 2 years, you will only have to pay short term capitol gains, which is half of the tax penalty.
If you have any questions, please feel free to e-mail me at CalifLoanOfficer@Yahoo.com
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