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?
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.)
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