Legal Question in Tax Law in New Jersey

Re: Capital Gain on Vacation Property

If your townhouse was your principal residence prior to acquiring your Hillsborough property, you are in luck! If you have a property which is your principal residence for 2 of the past 5 years, it can have $250k excluded from capital gains tax. My suggestion is you talk to your tax lawyer to make sure your Point Pleasant Townhouse is your principal residence and meets the requirements of the Internal Revenue Code.

I hope this helps!

Ron Cappuccio

http://www.taxesq.com

Re: Capital Gain on Vacation Property

I agree with Ron that you may be able to shift your primary residence back to the shore, if it was ever used as your primary residence previously. If it was your primary residence previously, I suggest moving back to it before the end of the year, and re-establish it as your residence for 2007 (change voting residence and other indicia of preimary residence ASAP). Side issues include whether you ever used the shore as rental property and reported it as such for tax purposes, as this may have tax ramifications also. I also recommend talking with your tax advisor about these issues, as more facts are needed to determine proper tax planning. This is a reply to an Internet question and the response is not intended to be legal advice or as creating an attorney-client relationship.