Question on realestate gains (Realtor, sellers, buyers, capital)

[cvap]

I own a residence that includes a large amount of land. I have heard that if you sell your residence you do not pay capitol gains on the profits. What if while selling the home I sell a lot or two separately? How does this work as far as gains? Is it black and white or a gray area that you might be able to get away with?

[SmartMoney]

I think you know your answer, but you are hoping you are wrong.

How many HUD I's can you have on your primary residence?

[Elke Mariotti]

Originally Posted by SmartMoney

I think you know your answer, but you are hoping you are wrong.

How many HUD I's can you have on your primary residence?

[cvap]

Originally Posted by SmartMoney

I think you know your answer, but you are hoping you are wrong.

How many HUD I's can you have on your primary residence?

I've just found out you can split your residence up and pay no tax on a gain up to 500k per couple on the combination of all the sales, as long as they all happen within a year of each other and were separated from the original deed.

[dontaskwhy]

Good to hear you got your answer.

The capital gains exemption is $500,000 for a married couple but only $250,000 for an individual owner (to my recollection).

[George Chong]

Originally Posted by dontaskwhy

Good to hear you got your answer.

The capital gains exemption is $500,000 for a married couple but only $250,000 for an individual owner (to my recollection).

Yes that is what I remember too.

Understanding Capital Gains in Real Estate | Realtor Magazine

[thelopez2]

Originally Posted by cvap

I've just found out you can split your residence up and pay no tax on a gain up to 500k per couple on the combination of all the sales, as long as they all happen within a year of each other and were separated from the original deed.

Is that within 365 days or within the same tax year?

[cvap]

Originally Posted by thelopez2

Is that within 365 days or within the same tax year?

I'm not sure but it only makes sense that it would be within the tax year so you'd better have all your buyers lined up.
I guess that would be kinda difficult