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levr
levr, Tax Advisor
Category: Capital Gains and Losses
Satisfied Customers: 28084
Experience:  Working for a large tax preparation service
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I have a second home that I purchased 3 years ago in

Customer Question

I have a second home that I purchased 3 years ago in foreclosure in a town about 160 miles away from my permanent residence. I was hired by a company in that town away from my normal residence so I used to live in through the week and then traveled home on weekends. I never rented it out as I was the only person using it. I just switched jobs and will be selling the second place and moving everything back to my primary residence. Do I have to pay capital gains on the sale of the second place?
Submitted: 9 months ago.
Category: Capital Gains and Losses
Expert:  levr replied 9 months ago.

The first issue - if you have or expect to have a capital gain.

The gain is calculated as (selling price) MINUS (adjusted basis) MINUS (selling expenses)

The basis is your original purchase price.

That basis is adjusted by improvement and some other expenses)

Expert:  levr replied 9 months ago.

If you realize the gain - then - yes - it will be taxable regardless of the reason you are selling the property.

Only the gain realized from the sale of a primary residence may be excluded.

However because the property is owned more than a year - that will be a long term capital gain taxable at reduced rates.

Let me know if you need any help with reporting.

Otherwise...

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