Posted by Tim (CT) on July 02, 2003 at 11:03:51:
Hi Marcos!! How have you been? Hope things are great with you.
Thanks for the reply. Ya, I’ve read the statement ‘…you must live in the property 2 out of the last 5 years…’ but I haven’t heard anything about ownership. Do you also have to own it for 2 years or just live in it? Are there family exemptions? I have a call into my CPA. But, just trying to get some initial feedback on the subject.
Another thing: I (and my brother) have owned this property for the last 8 years or so. My parents have lived there for the full duration. So, if I do have to pay capital gains, it should be long term gains (Max 20% I’ve heard). Also, we’ve never taken a tax deduction for this property since we’ve owned it. I (until I started educating myself about real estate) never thought about it. This is something I want to speak with my CPA about. I want to find out what it would take to file a modified tax return from previous years.