I have had a rental property for 5 years. How long does it have to be my primary residence to escape capital gains? Any other loop holes?

Asked by Scott1234, 20194 Sun Jan 17, 2010

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Vivianne Rut…, , Fairfax County, VA
Sun Jan 17, 2010
Didn't you post also this question today?
Do these two questions refer to the same property?

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Anna M Brocco, Agent, Williston Park, NY
Sun Jan 17, 2010
For accurate answers contact your tax professional as he/she knows your finances/situation best.

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Vivianne Rut…, , Fairfax County, VA
Sun Jan 17, 2010

And you pay capital gains tax only on profits ABOVE: $250K for Single, $500K for Married couple.
You calculate profit as follows: Sale price - Purchase price = Profit
If the profit is higher than $250K or $500K, you do owe tax.

Pay it and be glad that you are lucky enough to actually be able to pay the tax - there are many others who instead face a short sale or a foreclosure!

NOTE: For tax advice always contact an accountant.
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Cindy Jones, Agent, Alexandira, VA
Sun Jan 17, 2010
You should always check with an accountant to make sure you home meets all of the qualifications. The rules are in general for 2 out of the last 5 years.
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Monika Kumar, Agent, Reston, VA
Sun Jan 17, 2010
Dear Scott,

This is what I know;

2 years of last 5 years. It does Not have to be consecutive but 2 in Last 5
You can only sell one primary residence in last 2 years.

PLEASE buzz a tax accountant to be SURE..
Web Reference:  http://www.realtygeeks.com
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