Capital Gains Tax on Residential Real Estate Transactions - Intel by virginiabeachrealestate

Qassia Global > Qassia United States > virginiabeachrealestate's Intel > Capital Gains Tax on Residential Real Estate Transactions

Intel Contributor

This intel was added by virginiabeachrealestate

Intel Classification

This intel has been classified as Existing Authored Content, which means it was authored by the contributor, and first appeared on the contributor's blog or website.

Intel Calendar

November, 2008

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

January, February, March, April, May, June, July, August, September, October, November

Sign Up!

Not a member yet? You're missing out on one of the most powerful website promotion resources on the web. Sign up and join the party.

About Qassia

Find out more about Qassia by reading our About Us page, if you haven't done so already. Or you could skip straight to the Sign Up form.

	PRINT THIS INTEL EMAIL THIS INTEL

Capital Gains Tax on Residential Real Estate Transactions As a REALTOR who manages rental property, I often get asked about capital gains taxes that pertain to residential real estate that someone both has lived in and also rented to others. Currently, the capital gains tax rate is 15% of the gain. Now a property can be deemed a principal residence for tax purposes and sold without owing the tax if the following conditions apply: 1. You must have resided in the home for at least two of the last five years. The two years can be but do not need to be consecutive. 2. Another property cannot have been sold as a principal residence within two years prior to the current sale. Nor can another one be sold until two years after. 3. You must prove that you resided in the property for two years. Mailing address, address on record with the IRS, utilities accounts in your name, can be ways of proving residency. Don’t forget recapture tax on any depreciation you have claimed while the home was a rental. Gone is the one-time break of $250k per individual or $500k per couple capital gains tax exemption.