Capital Gains Question
Capital gains laws...I know that the law now states that I must live in the property for 24 months out of the previous 5 years for an exemption. In the old days, it was an exemption from your first sale. I am told now that you are still exempt from your first sale, but that you can choose not to claim the exemption until your third or fourth sale. Is this true?? Thanks.
If you are referring to your primary residence, the old rollover replacement rules were repealed and replaced by the new two year rules we have today. Since you are no longer required to reinvest your sale profits to take the tax free exclusion, "banking" the gain in your next home is not required any longer.
The capital gains exemption is optional. You are not required to take your tax free primary residence sale profit tax free -- you can elect to pay capital gains taxes on each sale if you so choose.
Wow, I thought I would get some sort of reply, can anyone tell me of another site that might be able to help? Thanks