Taxing of proceeds from 1st home sale.... - Posted by Sean D.

Real Estate Investing Real Estate Law
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Posted by Terry L. Trimble on July 10, 2003 at 01:09:53:

Sean, you’re thinking of the old capital gains rules that applied to personal residence sales. A few years ago, Congress changed the rules so that so long as you have lived in your residence for 2 of the 5 years before the day of sale, you pay no capital gains tax on the first $250,000 of gain, or $500,000 if you and a spouse owned the property together. So unless you’ve struck gold with your sale, you should have no federal income tax at all on your gain.

Terry L. Trimble
Law Offices of Terry L. Trimble, LLC
Baltimore, Maryland

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Taxing of proceeds from 1st home sale… - Posted by Sean D.

Posted by Sean D. on July 06, 2003 at 22:49:57:

I am going to be a new entrant into the real estate investment world as I am in the process of selling my single family home in CT and looking to purchase a multi-family. The question is, once I sell my home do I need to put the gain into the down payment of my next purchase or can I hold on to it and use it to make repairs if necessary in order to defer taxation?

Your help is appreciated.