How long do you have to live in your home before you sell it, in order to avoid capital gains?
440481
2 out of the last 5 years. However, there are some exceptions to that rule. One exception is you moved more than 50 miles away because you changed jobs. In that case,  you only have to live in the house for 18 months.
627801
No, you can't avoid capital gains tax. Unless it is in an IRA if you sell it you pay taxes. That may not be that bad. If it is a long term gain bite the bullet and pay the 15%. The 15% maximum capital gains tax is a big windfall to someone in your situation. No one likes to pay taxes but in your case it is pay me a little now or a lot later.\n\nIf it isn't a long term gain yet then certainly wait until it is.
900138
No not form some time.\nAs a seller you need to figures out what you can sell for and God help you if you just got the house in the last three years or have a equity line of credit, you will be up side down.\n\nIf you have some equity do be greedy the longer you wait the less you will make. \n \nThe reason for this is that the bubble is breaking checl out this web site and see why has happen and why you may get screwed.\n\nBest of luck.\nhttp://www.breakingbubble.com/index.htm
543390
No, Only investment in residential flat and not any shop  is allowed for the purpose of exemption from Capital Gains u/s54 of the I T Act.\n   Please consider , and this is also related to our earlier question regarding the best option for you to save taxes . following option\n\n   1. Invest in some residential flat with a view to sell it after three years. You will get exemption from Capital Gains, you will get Indexation benefits when you will compute the capital gains on the flat sale and mind you the  most permanent appreciation in growing India is Real Estate  in India right now. So overall you will get highest return from your investment. Moreover, if you also take loans for purchase of flat , that will further reduce your liability to tax for three years.\n2. Keep the amount of capital gains in Capital Inc&#92;vestment bond and as per law if you do not invest it withing next two years from the date of transfer, the amount will be the capital gain in the year in which such three years from the date of transfer of the flat completes. Thus you are only forwarding your tax liability by some years.\n3. Pay the tax.and be in peace!
463475
Depends on whether this is an investment property or your primary home.\n\nPrimary homes allow for a gain of up to 250,000 if you are single, 500,000 if you are married.\n\nIf this is an investment, you will have to pay capital gains if you do not do a 1031 exchange.  There are formulas to calcualting your gain and applicable taxes.\n\nYou can also choose to do a 1031 exchange, and defer capital gains taxes into another investment property.\n\nHere's a link to the capital gains calculator on my site:\nhttp://www.nnnstore.com/1031_capital_gains_calculator.php
340708
No that's wrong. It is 7 years for taking posession. However, just because you are using it doesn't mean you own it. If the owner is paying taxes on it, that doesn't work. The owner must have not paid for 7 years. However if you don't pay the taxes before they are 6 years late, the government will take the property. If you are talking about a right of way then it is 20 years of obvious use.
1076770
If you decide to begin using the property as your principal residence, you will eventually be eligible for the home sale gain exclusion after 2 years ($250k single, $500k married).  However, you would still have to pay 25% federal tax on the amount of depreciation you took while the property was a rental (this is "depreciation recapture"), assuming you have a gain on sale.
146388
How long have you owned the house.  If you have owned the house for more than two years, you shouldn't have to pay tax, however, this is CA law and you needed to have used the house as a residence.  Also, if you invest the money in a different property you shouldn't have to pay.  There is a transfer form.
273217
Most definitely.  And you don't need a trust as one of the other responders stated.  Borrowing the money is usually the biggest challenge, but I would imagine you've got that covered.\n\nAnd to be a little more specific from the previous answers, the IRS holds a withholding tax when you sell to make sure your capital gains taxes get paid without your skipping out.  \n\n\nGood luck!
451536
The normal exemption is $250,000 ($500,000 on a joint return).  However, there is a 2-year residency requirement.  If you have lived in the home for less than 2 years but are moving due to a change in place of employment, you may be entitled to a reduced exemption.  The reduction is proportional to the amount of time by which you fall short of 2 years.  So, if you satisfied 80% of the holding period, your exemption would be $200,000 (or $400,000).
149330
I dont think you have any time.  If the house was lived in less than two years, you always pay capital gains. Always check w/ your financial advisor or lawyer, but I think the min. is two years.
227672
Actually, you have to live in the house for two of the last five years. If this is the case, then tax code allows you to keep $250K or $500K if married before capitol gains taxes apply.
895813
If you lived in the property for ALL of 2002 and 2003, but not after that, then you'd have to sell by January 1, 2007 to qualify, since the specified time is two out of the five years prior to the date of sale, and 5 years prior to 1/1/07 is 1/1/02, the start of your two year period of residence.  So you're running out of time in about 6 weeks.  If you only lived there part of 2002 and/or 2003 but not after that, then you don't have the full two years residence so don't qualify.\n\nAs someone else said, the fact that you had converted it to rental property after that does complicate matters, and you couldn't exclude all of the gain if there is depreciation that you claimed or could have claimed.
1113697
Maybe not, depending on how much you sold it for.  The law changed a few years back - until then, answer would have been yes.\n\nAssuming you owned and lived in the home for at least two years out of the five years before you sold the house, and you didn't exclude gain from another house in the 2 years before the sale, you can exclude up to $250,000 of the gain.  If you're married and file a joint return for the year of the sale, either you or your spouse owned the house for 2 years out of the 5 before the sale, both of you lived in the house for two of the five years before the sale, and neither of you excluded gain from another house within  2 years before the sale of this one, you can exclude $500,000 of the gain.\n\nIt doesn't matter anymore for tax purposes whether you invested the gain in another home.
813670
I am also a seniour citizen.  My investment is in property only.  My strong advise is not to sell the flat unless you are badly in need of money.  The value of properties are going up and up daily.  If you sell now, you cannot buy it again.  Selling property and paying capital gains is all waste.\n\nIf you have to sell your property, and if you happend to pay tax, to avoid paying tax he has to invest the profit in capital gain bonds. If your father has no other income, then you can deduct Rs.1.85 lakhs from the profit. Say indexation profit is 3 lakhs. less 1.85 lakhs rebate to >65 years old people. Your net profit on which you have to pay tax @20% is Rs.1.15 lakhs.)\n\nWhat Mr.Rupin sain in his above answer is partly not correct.  For the purpose of Long Term Capital Gains on Property, you have to go indexation only and no other methos. (The other method of 10% is only for mutual fund units.) Mr.Rupin said two methods.  No two methods. Only one method for property that is indexation and 20% tax.\n\nI have given the below answer to a question about long term capital gains of a property.  Follow this.  This will give you how to calculate the tax.  About 20 years back say during 1985-86 the indexation was 133.  For 2005-06 it is 497. \n \nCost if Indexation is only for the purpose of calculating Long Term Capital Gains. Listed/shares sold in Indian Stock Exchanges are free from payment of Tax, if they are sold after 12 months of purchase. Other properties will be treated as Long Term Cap. Gains if they were sold after 36 months. For this, the indexation cost will apply and the income tax on this income is @20% flat rate. \n\nExample:\nOn 17.9.1982 your have purchased a house plot for Rs.10,000/-. That is in the FY:1982-1983. The Cost of inflation index for that year was 109;\n\nOn 16-11-2005 you have sold the same for Rs.8,00,000. The financial year is 05-06 and the inflation index for that year was 497.\n\nYour actual gain is (8,00,000-10,000) Rs.7,90,000/- \n\nYour actual cost of the house site is Rs.10,000\n\nYour inflation indexation cost is 10,000 x 497/109= Rs.45,596/-\n\nYour inflation indexation gain is Rs.8,00,000-45,596= Rs.7,54,404. \n\nThe tax on it will be Rs.1,50,881+ED2%. \n\nIf you need any personal clariication (free advise), please send me a mail to my mail address neswarareddy@yahoo.com
874327
I think a couple of people may have missed the fact that you said this is an INVESTMENT property.  If this is your personal residence the answer is, indeed, no. (and since you referred to the 2 out of 5 rule you may have just misspoken when you said investment because that rule ONLY refers to primary residences). However if this was an investment and you lived somewhere else than you can take a capital loss. (If there was personal use AT ALL of the property it is NOT an investment). All of your improvements will be added to basis to possibly increase your loss.  Please keep in mind that your capital losses can offset your capital gains and then go to a maximum $3000 ($1500 if MFS).  Any excess loss will be a carryover loss to be used in future years.
1135699
That depends.  If it was your principal residence, and if you lived in it for 2 out of the last 5 years immediately prior to the sale, then you may exclude up to $250,000 ($500,000 if married filing jointly) in gain from federal taxes.  Excess gains are taxed as capital gains, as is the entire gain if you don't meet the ownership, residency and/or occupancy conditions.\n\nCA law may vary on that.  Consult a tax advisor in CA for full details.