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What is the cutoff for paying CAPITAL GAINS TAXES
I purchased a townhouse in December of 2016. Never occupied the property, just fixed it up. Im looking to list it next week but want to make sure I am in the clear of paying capital gains taxes on it. How long do you have to own a property in order not to have to pay capital gains taxes? Thanks.
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@Rashad Jones Jennings
There is no limit to this. If your basis is 100k when you buy in 2016, and you hold for 50 years and sell for 500k you pay taxes on 400k.
The only way around this is 2 separate things. You live there for 2 out of 5 years and sell tax free for 250k in gains free if single or 500k if married.
Other option is 1031 exchange where you use a qualified intermediary to roll off your sale proceeds into another property. This defers it doesn’t eliminate it
No tax advice given