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Mom looking to sell a house that I own. What's the best strategy to avoid taxes?
Hi,
So here's the story, about 4 years ago I had helped my mom get a home loan under my name. The reason was that at the time, she was just starting to establish her business and she couldn't get a good interest rate. Luckily, my work moved me in the area and we decided that we purchase the house under my name and we can all live there. After a year, I was asked again by my company to move back to Maryland so I did. I however, kept the house as my primary residence in Virginia beach still and sent most of my mails there. I rented a place for another 1.5 year before purchasing another house which now became my current primary residence. Recently, my mom had asked me that she plans to sell the property and buy a new one (this time she can buy under her own name since her business has been established). What's the best strategy for us so that we won't have to pay capital gains? I understand that for single filers it's $250k and married filing jointly it'll be $500k. Next year if she sells, I will be filing married filing jointly (granted my soon-to be wife is not in the deed, only me).
Here are the time frames:
8/23/2019 - bought the house virginia beach under my name(loan started)
12/01/2020 - I moved back to maryland due to work and rented however kept virginia beach house as primary residence
12/01/2021 - Bought a house in maryland with my soon to be wife and now claim that as primary residence
Will I be avoiding capital gains if we sell the house since technically it's my primary residence from 8/23/2019 to 12/01/2021? Please advise. Thanks.