Capital Gains Tax

has anyone got quick info on capital gains tax. Situation, selling HUD home, lived in less than 2yrs, potential profit 60g, will I loose 50% of this profit in cap gains tax if I sell in less than 2 years? confused

Comments(5)

  • maw6th March, 2004

    tax laws state it is taxed as regular income.

  • HouseHuntersUSA6th March, 2004

    Have you considered a 1031 exchange? Maybe check with an accountant regarding doing a possible lease with an option to buy in which you'd own it two years. Not sure if the lease option will work, but it's worth checking into.

    Best of luck.

  • Birddog16th March, 2004

    Captial Gains tax is usually 27%, but you get 2 years to reinvest that money into somthing else before you have to pay it.

  • InActive_Account6th March, 2004

    I believe that if you have not used your exclusion from paying capital gains within the last 2 years it is pro-rated. So if you lived there 19.2 months(which is 80% of 24 months) you will have to pay on 20% of the gain or in your case on 12K profit.

    L/O will not work as it has to be your primary residence[ Edited by JohnNH on Date 03/06/2004 ]

  • Zach6th March, 2004

    It's my understanding that in Michigan you are exempt from paying capital gains tax (up to 250k) if you own the home for at least 5 years and it is your primary residence for at least 2 of theose 5. Don't know where you live, hope this helps. Z

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