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Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 36331
Experience:  Texas Attorney for 30 years dealing in real estate
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I am a 59 yr old widowed/divorced woman and have owned

Customer Question

Hello, I am a 59 yr old widowed/divorced woman and have owned a house in Denver, CO since 1977, however it has been a rental on and off for the last 10 yrs. I did live in it 3 yrs ago for a year and my daughter has been living in it since July, 2015. I do have a mortgage, which I have been paying. My question is, am I eligible to sell without paying capital gain taxes as I thought you have a one time sale of your home without paying the tax over the age of 55. Thank you for your time. Karen
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  Ray replied 6 months ago.
Hi and welcome to JA.Ray here to help you today. A past deduction for homeowners age 55 and over even allowed them to exempt up to $125,000 of gains from the sale of their homes. But the Taxpayer Relief Act of 1997 replaced the age exemption with a an exemption for all home sellers. Here Congress eliminated the age 55-and-over capital gains exemption on home sales, current exemptions are more valuable, especially to married home sellers. In general, married couples selling their homes can exempt up to $500,000 in profit from their sales. Single home sellers are allowed to exempt up to $250,000 in gains, too. Only main homes qualify for the home sales capital gains exemption, and home sellers must meet time-in-residence requirements as well. To qualify for the home sale capital gains exemption, you must have lived in your main home for two out of the past five years. The total years you live in your main home don't have to be sequential, though. I would suggest you move back into the house for a year here to exempt the capital gains.You would have to register to vote, forward mail, etc in order to appear to have this as main residence.You don't need sequential years here you have one year already you need another one to qualify here. I appreciate the chance to help you today.Thanks again and the best to you. Reference

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