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How to avoid capital gains taxes when selling a property for more than you paid? I know owner-occupying for two years is one way, and I've heard that immediately investing in another property is another way (is this true or not?). Anything else?
First of all it is important that you calculate any gain or loss correctly. Calculating can be complicated depending on how you obtained the property, your costs to aquire the property, your costs to dispose of the property and any improvements (not repairs) that you may have made. When you calculate correctly you will achieve your "tax basis" which you can use to determine any gain or loss.
Primary residences may be calculated differently than investment properties.
Investment properties MAY be eligible for a 1031 exchange which defers any tax liability.
I would suggest you consult with a competent tax professional to help you determine how the tax code applies to your situation.
How to avoid capital gains taxes when selling a property for more than you paid? I know owner-occupying for two years is one way, and I've heard that immediately investing in another property is another way (is this true or not?). Anything else?
Investing the money in another property was the old rule. Like 20 years old. That was replaced with the 2/5 year rule. You need to have lived in it for 2 out of the last 5 years as a primary residence. Note that if you rent it out you can't move back in for 2 years and claim the full capital gains exemption. That loophole was closed in 2009 yet so many people still think it's true. There are no other ways to claim the exemption. When you make major improvements to the property you can increase your tax basis. This decreases your capital gain some. Keep detailed records.
If it's the house you've prattled on about in the other thread it should be a non-issue since you're "giving it away". Otherwise you need to do a 1031 tax exchange or have it qualify for owner occupancy exemption. 1031's are relatively complicated. You'll need to get an attorney that's experienced in handling them.
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