Personal Residance And Capital Gains?

My borther just bought a new home and moved in, he is fixing the home he has lived in for the last 7 years and will sell it when renovated. Will he have to pay capital gains taxes, or any other taxes for that matter?
Thanx, Don

Comments(1)

  • ew8616th July, 2005

    You are right that if he lived for total 24 months the past 60 months b/f selling date, he can claim as primary residence. Hence, he does not have to pay capital gain tax for the first $250K if he is single and $500K if he is married. Under condition that he has not used this exclusion the past 2 yrs.

    Yes, exchange 1031 is for rentals. Exchange 1031 simply deffered capital gain tax.

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