Capital Gain Taxes

[Rigo Medina]

Hello,

I know the answer is to seek advice from a CPA, but I wanted to pitch this question anyway.

I have heard that selling a home on the 366th day after the purchase, one doesnot pay capital gain taxes.

I also recently heard that I will pay capital gain taxes on a rental home that I am selling. I have owned the home for 8 years and refinanced it 4 years ago. I am selling it for about $25k more than what I paid 8 years ago.

Any thoughts?

[Wayne Brooks]

For your Owner Occupied Primary Residence....after 2 years of owning And occupying, you pay no capital gains taxes. As for your rental, you will pay depreciation recapture on all of the depreciation taken, or that should have been taken, at usually a 25% tax rate, and cap gains tax 15-20% on the actual cap gain. The refinancing has no effect on this.  Your CPA can calculate the exact numbers.