avoiding capital gains tax - Posted by john

Posted by William L. Exeter on March 19, 2006 at 12:33:33:

Section 121 requires that both taxpayers OWN and LIVE in the property for at least 24 months out of the last 60 months in order to qualify for the 121 exclusion. If you and your spouse both owned and lived in the property for the required time and you both reported it as your primary residence for income tax purposes, then it would just be a matter of correcting title by recording a quit claim deed to add your new spouse to title. I suspect by reading your post that your spouse did not live in the property, which would mean that only you could claim the 121 exclusion for $250K.

Bill Exeter

avoiding capital gains tax - Posted by john

Posted by john on March 13, 2006 at 15:43:01:

I have a house that I lived in 2003 and 2004 as a primary residence. It was rented out in 2005. I’m thinking about selling it by 2007 to avoid the capital gains tax. The title was placed in my name only since I was single at the time of purchase. The equity is about 300,000. Now that I’m married can I take the full 300,000 profit without paying taxes eventhough the title is only under my name? Or would I be treated like a single since the title is only in my name and only be able to avoid paying up to $250,000 in gain as opposed to $500,000 for a married couple??

P.S. How does the government treat commercial capital gains? Any different?