Q: I bought a condo in cash about 110 miles away from my primary residence for work.
I want to keep my home as my primary residence and use my condo as a second residence, despite having to live there for work. I also want to rent my primary home without jeopardizing it's status. How do I do this?
A:
If you are asking about what qualifies as a primary residence when you go to sell the property so you don't have to pay capital gains taxes, you will need to ask your CPA. This is a tax question. My basic understanding is that you have to have lived in the property for two out of the last 5 years before you sell it. But check that with your CPA. Also if you use a house as a rental and write off depreciation you may have to recapture your depreciation write-offs when you sell the house. Again, ask your CPA for a tax analysis.
If you are worried about what is considered your primary residence for some other reason, you will need to post your question again and be more specific.
A: PS Currently only the first $250,000 of net profit is exempt from capital gains when you sell your primary residence. (It is double that if you are married.)
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
