You have to own the subject property for a total of five years if it was part of a 1031 exchange in order to get teh 250/500k exclusion. You must live in it for at least 2 of the past 5 years to get teh exclusion. This 5 year rule is only in place if the property was purchased with a 1031 exchange.
finniganps is correct. Also, the 121 exclusion will only exclude your capital gain income taxes; it will not exclude any depreciation recapture. The five (5 ) year holding requirement that was mentioned was in the October 2004 tax act.
[addsig]
You have to own the subject property for a total of five years if it was part of a 1031 exchange in order to get teh 250/500k exclusion. You must live in it for at least 2 of the past 5 years to get teh exclusion. This 5 year rule is only in place if the property was purchased with a 1031 exchange.
finniganps is correct. Also, the 121 exclusion will only exclude your capital gain income taxes; it will not exclude any depreciation recapture. The five (5 ) year holding requirement that was mentioned was in the October 2004 tax act.
[addsig]
Depreciation recapture is taxed at 25%.