Personal Residance And Capital Gains?
My borther just bought a new home and moved in, he is fixing the home he has lived in for the last 7 years and will sell it when renovated. Will he have to pay capital gains taxes, or any other taxes for that matter?
Thanx, Don
You are right that if he lived for total 24 months the past 60 months b/f selling date, he can claim as primary residence. Hence, he does not have to pay capital gain tax for the first $250K if he is single and $500K if he is married. Under condition that he has not used this exclusion the past 2 yrs.
Yes, exchange 1031 is for rentals. Exchange 1031 simply deffered capital gain tax.