Q: i purchased a condo which I now rent and want to sell it to buy a house to live in. Do I have to pay capitol gains tax
I have not lived in the condo for over 10 years, I am over 55 and have never used my exemption, I am married. We want to use the money from the sale of the condo to buy a house. My husband has never bought a house and qualifies as first time buyer.
A:
Yes. It's a business asset so the net gains would be taxed at long-term capital gains rates.
You can't use the like kind exchange rules to go from rental to personal.
A: In order to qualify for the capital gains exemption, you must have lived in the property for at lease 2 of the most recent 5 years. On the basis of what you've described, you will not be eligible for the capital gains exemption for the sale of a personal residence.
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