As of august 20,2006, can a person over 55 years old be exempt from capital gains when selling a house?
Answer:
Your age no longer has anything to do with your capital gains exemption on the sale of your home. If you sell your home and you have lived in the home as your primary residence in 2 of the last five years you may take a $250,000 exemption ($500,000 if you and your spouse owned the residence together). This exemption IS per occurence NOT a lifetime limit.
For example, if you bought your house in January of 2003 and lived in the house for one year until January 2004, then used it as a rental for one year until January 2005, then lived it in for another year until January 2006 and then used it as a rental until now - You have satisifed the two out of the last five years rule and have qualified for the exemption.
If you need additional information go to www.irs.gov and search for publication 523 which will give you all the details you ever (never?!) wanted to know about the sale of your primary residence.
By the way - if this home was not your primary residence in two of the last five years there will be a different answer!
sure, your accountant and lawyer will tell you how
Yes, to a point. For an individual there is a $250,000 exemption from the first part of the gain, for married couples it is $500,000.
These exemptions have rules though and possible limitations. Check out the IRS website at www.irs.gov and search the site for "Selling a Home" or look at the instructions for Schedule D.
yes you can. Hire an accountant.
It depends - have you used the exemption previously, because it is a $250 or $500k limit (per lifetime), not per event.
Also, there are rules, like you have to have lived in the house the past 2 out of the past 5 years, and if you rented it out, there are other regulations you need to be aware of, in case you're converting from a rental to a residence.
Also, only primary or secondary residences qualify, so if this is your second Florida home, you need to show that residency, which is more difficult if you're only there part of the year.
Looks like a simple question, but without much more information, can't give a simple answer.
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