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.
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.