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Stephen G.
Stephen G., Financial Advisor
Category: Capital Gains and Losses
Satisfied Customers: 7198
Experience:  Senior Tax Expert; CPA/PFS(retired)Personal Financial Planner; Small Business & Professional Mergers & Acquisitions
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Our primary residence is in Michigan. We have owned this

Customer Question

Our primary residence is in Michigan. We have owned this home for over 15+ years. It has been our primary residence for 11 years. We are there 7 months out of the year and the other 5 we are in Florida. We are thinking about selling the Michigan home and getting a smaller place (cottage). It is our Primary residence , and we homestead there so we don't have to pay capital gain on any profit when we sell it , correct?
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  Stephen G. replied 1 year ago.

Well, that would depend upon how much your gain is. If you have owned & lived in the home as your primary residence for a least 2 years out of the preceding 5 years ending on the date of sale then you would be able to exclude (on a joint return for the year of sale) up to $500,000. of the gain from your taxable capital gain. Even using the months you would have approximately 35 months (7months x 5 years) of occupancy during the 5 years, whereas you would only need 24. The occupancy doesn't have to be consecutive.

Expert:  Stephen G. replied 1 year ago.


Expert:  Stephen G. replied 1 year ago.

Just checking in to see if I can assist you further.

I see that you have had a chance to view my last series of comments.

Are you having a problem with our "star rating system" (it happens)? If so, you may just indicate your rating in words (ie. 5 stars, 4 stars, etc.) and then I may obtain credit for my efforts from Customer Service. Otherwise, I do not receive anything for my work with you, as we are only compensated for questions accepted by customers.

Thanks very much, Steve G.