The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Capital gains on homes Date:  12/7/2000  10:44 AM
Author:  chriscs Number:  42600 of 121061

I'm trying to figure out if I should sell my home or keep it as a rental. I've lived in it for about 2.5 years and would walk away with about $60000 if I sold. If I keep it as a rental, when would I lose the tax exclusion? I read the Fool's discussion on this. It sounds like if I sold it within 3 years after that, I could still exclude the gain based on the 2 out of 5 years rule even though it wouldn't be my current residence. I would appreciate people's comments on this. Am I right? And does anybody have any other advice, opinions on this? If when I'm ready to sell it, there's not a renter, can I include the time it takes to sell as part of 2 of the 5. Meaning, how does a home qualify as a principal residence. If no ones in it, then I could call either one a principal, right? Thanks for any help,