Capital Gains???

[Snglmom]

Does anyone know what the cap gain policy is these days??? I was under the impression that a person a person would have to pay cap gain regardless of the situation if he/she sold a home.

 

Also under a VA loan I've been told that as long as the owner has lived in the house for the last 3 of 5 years that if he/she decided to rent the home for a period of under 12 months the property is NOT considered to be income property.....correct?????

 

Thanks

[HDAlex]

You only have to pay a capital gain if there is a gain to be had.

 

Also, WRT housing, there are exemptions for capital gains tax. If you live in the house for two out of the last five years, you can exempt from capital gains: $250k single/$500k couple.

 

-HDAlex

[Snglmom]

thanks for the info......

[Loanshopper]

You oly have to pay IF you did LIVE in house for last two years before sale and Gain is more than 250,000 singel or 500,000 married.

 

""SELLING YOUR HOME at a profit represents one of the best tax deals around. Thanks to laws passed a few years ago, you can now reap up to $250,000 (if single) or $500,000 (if married) in cool, tax-free gains when you sell. ""

 

From: http://www.smartmoney.com/tax/homefamily/i...?story=homesale