Posted by Sue(NC) on February 21, 1999 at 12:48:10:
I think the 1998 change was for exclusion of gain if the home was your primary residence for 2 of the last 5 years, not 3- Making a 3 year term the most you could allow for a lease. I wouldn’t want to cut it that close, in case there was a 2 day snag with closing, etc. Of course, if the tenent doesn’t excersize the option, that means that the seller has to move back in to protect his right to the exclusion…
cap gains for seller on a L/O? - Posted by rayrick
Posted by rayrick on February 20, 1999 at 14:01:37:
Can anyone give me the definitive word on whether a seller on a L/O can still qualify for the primary residence cap gains exemption? Does it depend on the lease term? Suppose it’s three years? And suppose they’ve already bought another house in the interim? Bronchick is just a little vague about it in his course, saying something like the “may” qualify for the exemption. Anyone have a more definitive opinion? Thanks a bunch.
-rayrick
Re: cap gains for seller on a L/O? - Posted by Bud Branstetter
Posted by Bud Branstetter on February 20, 1999 at 21:09:31:
I don’t see whether it was a lease option, contract for sale straight sale has a lot to do with it. The capital gains exclusion is for your primary residence in 3 of the last five years. If you start fudging then where were the utilities in your name, your job or voting. Then there is drivers licenses, car insurance and of course US mail.