Avoiding capitol gains tax from condo sale
I am under contract for a condo that was originally my primary residence . When I moved I rented it out because I was underwater . I’m now able to sell and may profit average 90k. I am not looking to remain à landlord and this is not enough to buy a second home . What can I do to avoid all the taxes ? Thanks
Terry Says
If it was your primary residence for two of the past five years, and you file as an individual, you get to deduct $250,000 of capital gains. If you don’t meet that test, you pay the capital gains tax on the increase in value. One way to reduce it is to keep track of all the permanent improvements you made in the property, which raises your cost basis.
