Selling Half A House...Capital Gains?
I'm buying a 2-unit multi next month.
I'm going to immediately flip one unit, as a condo convert, and live in the second.
Does anyone have any idea how, or if, capital gains applies if I'm technically NOT making a profit, selling only half of the house?
All things being equal, I'm assuming they split my original purchase price in half and base any gains on that.
Thanks.
[addsig]
You are correct. There are no profits to be taxed if you sell the condo unit for no more than half your original purchase price for the entire property.