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Richard, Tax Attorney
Category: Tax
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Experience:  29 years of experience as a tax, real estate, and business attorney.
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I live in California and plan on selling a small apartment

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I live in California and plan on selling a small apartment building sometime in 2012-13 (also my place of residence). I will be retiring at that time at age 62 yrs and moving to Costa Rica where I plan to pay cash for a home on the money I get from selling the building. Will I have to pay capital gains on what I net out from the sale?

Good evening. With regard to the sale of your residence portion of this, you can exclude up to $250,000 of capital gains due to the exclusion for sale of principal residence. If there is a part of the building that is not your residence, ifyou use any of the money to purchase investment property, you should structure the sale/purchase as a like kind tax-free exchange under Code Section 1031. With respect to any sale proceeds from the non-residence sale invested in your new home, you will be subject to capital gains tax on that piece.



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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

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