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? 
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?
tax laws state it is taxed as regular income.
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.
Captial Gains tax is usually 27%, but you get 2 years to reinvest that money into somthing else before you have to pay it.
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 ]
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