Legal Question in Real Estate Law in California

Capital Gains primary residence- 2 of 5 yrs

I own a home that I plan to sell, and the profit margin is under the $250,000.00 for a single person, such as myself, which I believe waives my having to pay Capital Gains tax. However, I have not lived on the property for two of the last five years as it has not been my principal primary residence. I plan to purchase a new principal primary residence of greater value immediately after the sale of my home. My question is can I avoid paying the Federal 15% and State 8.5% Capital Gains tax from the sale of my home if I buy the new home?


Asked on 1/27/09, 7:14 pm

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

Re: Capital Gains primary residence- 2 of 5 yrs

You have answered your own question as to the two of five year rule. If you made a trade of likekind properties there would be no taxes except as to any cash received.

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Answered on 1/27/09, 10:29 pm


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