Capital Gains on Primary Residence

[Cade Schacher]

With your primary residence can you avoid the capital gain tax if you have lived in it for less than two years? Would you be able to do something like a 1031exchange but instead of business or rental property it would be on a primary residence? I have been in my house for one year and may need to move in the next year for a work promotion? Optimally if i can i would like to refinance my residence into a 15 year fixed and turn it into a rental and then purchase my primary residence.  Like anyone else I  would like to tray and avoid paying my capital gains tax. Any suggestions?

[Dave Foster]

@Ray Johnson, there's no statutory period.  Only what is necessary for him to demonstrate his intent.  Most folks feel pretty good at anything over a year.  But in every situation there are circumstances where a shorter (or longer) holding period might be appropriate.