Phoenix, AZ asked in Tax Law for Nevada

Q: How long do you have to own and live in your house to get the capital gain tax?

Bought a house in august 2016 sold it in November 2018 lived in it the whole time

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2 Lawyer Answers
Frank Huerta Jr
Frank Huerta Jr

A: An asset held over one year is treated under the long term capital gains rate. Assets held under one year are treated under short term rates. If you are referring to the exclusion of income from the sale of your home, if you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free. If you are married and file a joint return, the tax-free amount doubles to $500,000.

A: Your house ids not an investment. Capital gains and taxes thereon only apply to investments.

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