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PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 4093
Experience:  Tax professional and business consultant for 35 years.
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I own a 2 family house and am planning to convert it to

Customer Question

I own a 2 family house and am planning to convert it to condominiums. I plan to sell my unit and use the $500,000 capital gains exclusion. I plan to move into the other unit and live there for at least 2 years and then sell it. Will I be able to get the $500,000 exclusion again since it will be my primary residence? If not, will I be able to use part of the original $500,000 exclusion that was not totally used up on the first sale? Thank you
Submitted: 1 month ago.
Category: Finance
Expert:  PDtax replied 1 month ago.

Hi from just answer. I'mCustomer

I can assist, buy will have to research to confirm the treatment.

I'll post an Offer of Premium Service. Accept, and I will look at this later today.

Expert:  PDtax replied 1 month ago.

I see you have one experts take already. I'll factor that in to the research time.

Expert:  PDtax replied 1 month ago.

I assume you rented out the other unit over time, and are selling the portion of the dwelling that you have lived in as a principal residence. The first sale should qualify for the exclusion.

When you move into the other unit, and live in it for the qualifying two years of five as your new principal residence, you can exclude the second gain as well, as adjusted for some depreciation recapture that might be needed (when it was a rental apartment).

Thanks for asking at Just Answer. Please rate my assistance to close out your inquiry. I'mCustomer

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