Capital Gains And Duplexes
I own a duplex and live in one side. It is my understanding that the capital gains exclusion will only apply to half of the appreciation of the property. It is possible to make it apply to the whole property if I live in one side for two years, move to the other side for two years, and then sell the property.
Is it also possible to simply call the building a single family home and the renters roomates and get the same exclusion? Would I have to put some sort of interior door between the units. Is this just a stupid idea anyway?
In light of the title of this website, I am trying to be creative!
I would think and I am not a CPA or Tax Attorney that the answer depends on your tax strategy...
Have you been depreciating the one unit and if so I think you’re screwed..
I would think that if you stop deducting the depreciation and renting it out and start occupying it that you’re fine. With or without the door..
The IRS tax code is online read it...
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