New Capital Gains for primary residences 2009

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Posted by Kristine-CA on October 29, 2009 at 19:56:53:

Can any one please help clarify the following information regarding capital
gains on a primary residences for 2009. I'm reading things that say 2009 will
be different because there will be allocations of the previous 5 years of
primary residence use, similar to before (2 of the previous 5 years).
However, any time after 1/1/2009 that is not primary residence time will be
allocated as owing for capital gains. I'll use an real-case scenario:

Owner owns and resides in property for 25 years. Value of property $100K.
Moves out of property February 2009, purchases new primary residence. Puts
previous home on the market. Property still hasn't sold.

When it sells, does the owner owe capital gains based on a percentage of the
5 years that occurs in 2009 where it was not her primary residence.

Assuming property sells December 1, 2009. For taxes filed in 2010:
December 2004 through November of 2009 is the previous 5 year period. Of
the 60 months, 10 of them are in 2009 and not primary residence.

What will capital gains be based on? Thanks!

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