Homesteading Vacation Property

• Print Articles

Summary: A homeowner moved into his vacation home and hopes to avoid capital gains tax when selling the property. If a vacation home has become your primary residence and you want to avoid capital gains, you should wait 24 months after the date you closed on the sale of the primary residence.

Q: I just homesteaded my lake home that I have owned for five years. In June I sold my primary residence. After two years, can I sell my lake home and avoid paying capital gains tax?

A: If your lake home has become your primary residence, and you want to keep up to $250,000 in profits tax free (up to $500,000 if you're married), you should wait 24 months after the date you closed on the sale of your prior primary residence to sell the lake property.

For more details, please check out IRS publication 523, "Selling Your Home" for more details.

See more articles on this topic by clicking on the "RELATED ARTICLES" above and to the right.

We have over 5000 articles on Real Estate Advice, Personal Finance Advice and Consumer Advice on our site. We encourage you to look at these articles. As always, if you have a comment on our articles, don't forget to post your comment below. We thank you for coming to ThinkGlink.com.

© Ilyce R. Glink. All rights reserved. This content may not be used, distributed, syndicated, compiled or excerpted in any medium or form without written authorization from Think Glink, Inc. For information on syndicating ThinkGlink.com please contact us.

Related Topics

• capital gains, 
• primary residence, 
• rental property, 
• vacation home

Rate this article

• Average rating of 0 from 0 readers

Comments

View all ThinkGlink events