• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

How long to sell house after buying new one?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

jemshkoj

Junior Member
I have purchased a new house and will be moving in a month. I have lived in my current primary residence for 5 years. This house is not ready to sell so the question is how long do I have to fix it up and move it on before capital gains tax is an issue?

Also would having my child live in the house while fixing it be an issue? we are willing to consider any arrangement as money is not currently my main concern so rent/board/stay without cost are all ok. The least complex solution is preferable.

Thanks for any help, this is the first house I have sold.
 


FlyingRon

Senior Member
In order to get the $250,000 shelter of the capital gain, YOU (not hour child) must have occupied the house for at least 24 out of the previous 60 months. That would mean, that if you move out after two years of using it as your residence, you have 36 months to sell it if you want to exclude the gain.
 

tranquility

Senior Member
However, be careful. You might let your tax preparer help you with the calculation if any use is considered "non-qualifying".
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top