Posted by ja net chamblee on August 19, 2005 at 09:00:38:
i am selling a vacation 2nd home
had it for 4 years.
I purchased the home in florida then could not travel so i rented the home shortly after purchase
selling it now what capital gains will i pay
2nd home capital gains - Posted by hightechinvestor
Posted by hightechinvestor on July 17, 2005 at 23:13:43:
I haven’t had a chance to check this with my CPA… but a friend of mine told me her CPA said if she sells her 2nd home she gets the gain tax free like a primary residence (she’s had the 2nd home for 1 yr. and so she’s expecting to get up to $125K gain tax free…her profit would be less than that). Her CPA is wrong… right? Tax free gain is just for primary residences that you live in at least 2 years in a 5 yr. period?
Re: 2nd home capital gains - Posted by John K Haslach, CPA, MST
Posted by John K Haslach, CPA, MST on July 18, 2005 at 09:27:20:
You have to live in the house 2 of the past 5 years to be eligible for any tax free gain.
Re: 2nd home capital gains - Posted by hitechinvestor
Posted by hitechinvestor on July 19, 2005 at 20:54:04:
So you CAN get tax free gain with a 2nd home… not just primary residence?
That’s great.
Re: 2nd home capital gains - Posted by fred
Posted by fred on August 12, 2005 at 14:59:21:
I have a primary home, in which I lived for two years and I have a second home, which I own for seven years and it is not a rental. I want to sell both of them this year. What kind of capital gains am I subjected to?
Re: 2nd home capital gains - Posted by John K. Haslach, CPA, MST
Posted by John K. Haslach, CPA, MST on July 20, 2005 at 04:44:49:
If you live in it as your primary residence for 2 of 5 years. A strategy some use is to sell their primary residence, in which they have lived in 2 of the past 5 years and move to their second home for 2 years. Then the gains on both homes are tax free.