I heard on bigger pockets podcast that if you live in your house for two years when you sell it the government doesn’t tax you on the profit. Is this true? What’s the conditions and is this nationwide?
Yes this is true the condition is you have to live there for two years, yes it is nationwide. Meant to encourage people to not stay in one place forever.
It has to be your personal residence for 2 out of the last 5 years.
This is section 121 exclusion.
It may or may not exclude your total gain.
It depends on the gain and your filing status.
Something to discuss with your accountant if you plan to sell your house soon.
@Rickey Davis As Basit mentioned, absolutely true. If you're married then up to $500k can be excluded from the taxes.
The other great strategy is depreciation on rental properties. So if you have $10k in income, and your depreciation is $10k, then no taxes on the income (subject to some rules).
Hope that helps,
Thanks a lot guys. This information is very helpful.