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Can I avoid How can I avoid paying capital gains taxes on a house I’ve lived in for 18 months?
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7 Responses to Can I avoid How can I avoid paying capital gains taxes on a house I’ve lived in for 18 months?
Stay in the house another six months.
You might be able to find a financial partner who would help you stay in the house, and in exchange, you’d pay him something afterward that would be less than you would have had to pay Uncle Sam.
Good luck.
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look into a 1031 exchange
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If you make a huge profit on the sale of the house, then you will owe huge taxes.
If you take your profit and reinvest into another property, you will not owe.
Unfortunately, Uncle Sam does not care about your family life or any other unforeseen circumstances.
Good luck!
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I believe if you move before the 2 years is up and you try to sell the house, you’ll pay those significant taxes on it! Even if you own the house for more than two years but live in it less than those two years, you pay! I would recommend asking an attorney or adviser for more info.
http://en.wikipedia.org/wiki/Capital_gains_tax#United_States
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If you plan to buy another house, you may be able to escape capital gains altogether, if you qualify for a tax-free exchange. You need to see a tax accountant, they will explain it to you.
http://en.wikipedia.org/wiki/Capital_gains_tax#United_States
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You must not sell the property to soon.
http://en.wikipedia.org/wiki/Capital_gains_tax#United_States
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I would look into a 1031 Exchange. It allows you to put the money you made from the proceeds of the sale into an account for future use of buying another property.
http://en.wikipedia.org/wiki/Capital_gains_tax#United_States
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