Legal Question in Real Estate Law in Colorado
selling a residence/non residence
am 60, lived in my home for 5 years, rented it for 10 years, still renting it. Want to sell, do I have to pay capital gains, or can I take the exclusion because of my age and the fact I did live it in?
2 Answers from Attorneys
Re: Excluding a residence from capital gains
Louise Aron
Attorney at Law
Lakewood Office:
1536 South Ingalls
Lakewood, Colorado 80232 USA
(303) 922 7687
fax (303) 922-1370
Cherry Creek Office:
300 South Jackson #100
Denver, Colorado 80209 USA
(303) 780-7339
Satellite offices:
Boulder - 4450 Arapahoe Avenue, #100
DTC - 4610 South Ulster, #150
A TOLL FREE NUMBER is available to clients outside the Denver metro area.
web site http://www.bewellnet.com/louise/
October 6, 2000
LawGuru User
Dear LawGuru User:
The exclusion applies to the taxpayer's primary residence, and therefore it sounds like your rental home does not qualify. In defining a residence for which capital gains may be excluded (up to $250,000 for individuals, $500,000 for couples), the IRS requires that the taxpayer has lived in the residence for two of the last five years.
There may be other relevant circumstances. Do you own another home? Have you evaluated which home has the greater potential gain? If it is the rented home, you may wish to return to it for two years and then sell it.
If you wish to have further information about this, please contact me. You may also visit my web site, which contains links to IRS publications.
Thank you for using LawGuru.
Sincerely,
Louise Aron
Attorney at Law
Main Lakewood Office:
1536 South Ingalls
Lakewood, Colorado 80232 USA
(303) 922 7687
fax (303) 922-1370
Cherry Creek Office:
300 South Jackson #100
Denver, Colorado 80209 USA
(303) 780-7339
Satellite offices:
Boulder - 4450 Arapahoe Avenue, #100
DTC - 4610 South Ulster, #150
A TOLL FREE NUMBER is available to clients outside the Denver metro area.
web site http://www.bewellnet.com/louise/
Re: selling a residence/non residence
Although my information may not be current in this area as we don't practice tax law, we believe the requirement for the single lifetime exemption is that you must have resided in the property for 3 of the last 5 years in order to qualify.
You would be well advised to consult a tax professional before you sell.
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