By Admin on Sep 28, 2008 in Renting & Real Estate
tb042203 asked:
If I rent out my current home and buy a new home, and then later sell my old home and apply the capital gains to my new mortgage, will I need top pay capital gains tax on the sale of the old home?
I know I don’t have to pay captial gains tax if I sell my home and buy a new home with the gains. But what of the staggered sell scenario?
Any help will be great!
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If I rent out my current home and buy a new home, and then later sell my old home and apply the capital gains to my new mortgage, will I need top pay capital gains tax on the sale of the old home?
I know I don’t have to pay captial gains tax if I sell my home and buy a new home with the gains. But what of the staggered sell scenario?
Any help will be great!
Website content
If you sell two or more homes within a two year period then capital gaines tax applies. Also, the tax is not as bad as most people think. It’s worth it especially if you are making a profit off your home.
nascarluvinmom | Oct 1, 2008 | Reply
If you have lived in the home and it was your primary residence for two of the previous five years than you are excluded for CG tax up to $250,000 for an individual and $500,000 if you are married. Now if you don’t sell the house in three years you lose the exclusion and would have to pay the CG tax. No you cannot roll that gain into your new mortgage. However, in the future this may be possible if certain legislation passes.
cpl285 | Oct 4, 2008 | Reply