Re: New Capital Gains for primary residences 2009

[ Follow Ups ] [ Post Followup ] [ CREOnline News Group ]

Posted by Natalie-VA on October 30, 2009 at 09:04:18:

In Reply to: New Capital Gains for primary residences 2009 posted by Kristine-CA on October 29, 2009 at 19:56:53:

Kristine,

I think what you are reading has to do with a property that was acquired via a tax deferred exchange.

In the old days, people would defer their taxes on investment properties and then eventually convert the last replacement property into their principal residence. As long as they lived there for 2 years and owned the replacement property for 5 years, they could use the 250/500 principal residence exclusion to avoid paying tax on the gain.

There was a rule change (made in 2008 I think) that tries to close that loophole by making people prorate the gain based on how long the house was a rental versus how long they lived in it.

I believe that is what you're reading about.

--Natalie

Follow Ups:


Post a Followup

Name    : 
E-Mail  : 
Subject : 

Comments:

[ Follow Ups ] [ Post Followup ] [ CREOnline News Group ]

CRE Online, Inc. © 2007, All Rights Reserved.
creonline.com