Capital Gains
We bought property 30 yrs ago intending to build on it but only put a garage on it. Before we built a house the party that sold us the property decided to sell his home next door so we purchased it and have lived it for 28 yrs. So our house is on one lot and our garage on the other separated by a neighbor's driveway. Anyway we want to move to another state but would like to sell the garage property first to have capital to build a new home in other state. Question is, if we sell it and then sell our house property in a year or so what capital gains will we have to pay ?
This is a great link: http://www.moneychimp.com/features/capgain.htm
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So am I to understand that the 500.000 exemption only applies to land on which you have your primary residence, not in other words, vacant land ? Would we be better off to sell the two properties together and then possibly claim it under the exemption ?