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Ray
Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 41537
Experience:  Texas Attorney for 30 years dealing in real estate
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In Minnesota how long does a person have to live in a house

Customer Question

In Minnesota how long does a person have to live in a house before it can be sold without capitol gains tax
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  Ray replied 2 years ago.
Hi and welcome to JA. I Am Ray and will be the expert helping you tonight. The tax law allows for capital gain exclusion on a primary residence of up to 250,000 or 500,000 if certain rules are met: Sale of Primary Residence: Section 121 of the US tax code allows for an exclusion of capital gain on the sale of your primary residence if you meet certain requirements. The maximum gain exclusion (income that is exempted from federal tax) is 250,000 or 500,000 if you are married filing jointly for the year of sale. The details are: Ownership and Use test: You must have owned and used (lived in) the home as a principal residence for at least 2 of the past 5 years prior to the sale. The two years do not have to be consecutive. If married filing jointly to be able to exclude 500,000, only one spouse needs to meet the ownership test but both spouses must meet the use test. You must not use this exclusion more than once in two years. If the home was used for business use or rental use at any time, you must recognize gain to the extent of depreciation deductions allowed or allowable after May 6, 1997. See IRS Publication 523, Selling Your Home, at http://www.irs.gov/This Publication is a great reference for those selling their residences here. Bot***** *****ne if you lived in it 2 out of the last 5 years you can claim the exclusion here under federal and state law. I appreciate the chance to help you tonight.Please let me know if you have more follow up. If you can leave a positive rating it is always much appreciated.
Expert:  Ray replied 2 years ago.
http://www.irs.gov/ Reference

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