Cap. gains tax question....
 

Someone please spare me a call to a CPA, of whom I know none.

What's the rule for selling a primary residence owned less than 2 yrs., if I'm buying another house to be my primary residence - i.e. moving to AZ? That 2 yr. exemption for up to $250k is all that's keeping me here right now and I have another 10 mos. to go. If sell this one and buy another house right away, can I get out of the cap. gains (around $100k in the 14 mos. I've been there) somehow? Is there some percentage of my gain that I'd have to put toward the new house? Thanks.

this might be helpful

http://doityourself.com/houseselling/capitalgainstax.htm

I don't think you have any exposure based on this article but I would certainly check with a professional before you make a final decision.

Forgot to mention (after I read the IRS website) that I excluded the gain on the sale of my previous house, which was listed, but did not sell until 2 mos. after I bought my current one. So I may be stuck for a year.

My tax accountant / CPA has told me that it doesn't matter what the gain (up to $500K) as long as you have listed the property as your primary residence two of the last five years. So ONLY two years would also count. You no longer have to purchase a property of greater value.

E

It looks like the exemption from the $250k gain can only be used once every two years. If you sell in less than two yrs., you can prorate the limit according to what percentage of the twi yrs. you did live there as a primary residence. No prob. there, as I've already lived here long enough under that formula to cover my gain. My problem is whether I can claim ANY exemption at all before Dec. 2006, since I claimed exemption from the sale of my last house in Dec. 2004.

Re: Cap. gains tax question....
 

It needs to be your primary residence for two years in order to take advantage of the exemption. No longer can you sell a house and roll the money over to a new house. That law was done away with a couple of years ago in place with this new law. The exemption is $250k if you file single or $500k if filing married. The beauty of this is that you can do this every two years with no limitation.

If you've been laid off or if your job is transferring you out of state, or if there is an urgent family need, there is some relief - you can get some of the exemption but you'll have to look into the details.

...And we have a winner! :)