S
sonny6
Guest
What is the name of your state? Washington State.
My wife and I are buying an investment property to restore and turn over. The Seattle area is still seeing decent appreciation so we haven't made any decision about when to resell, likely in a year or two depending on the market. Our understanding is for a year the tax rate drops to 15% and then if we occupy for 2 out of five years there won't be capital gains (up to the limits). Our present house is very marketable as a rental so we are considering moving into the fixer upper for the tax benefits. It will be vacant 6-12 months while I work on it. Are there methods to show that we occupy the house while I am working on it? What's the best stragedy here? If market conditions are really good in less than 1 - 2 years, I'm willing to simply take the tax hit.
My wife and I are buying an investment property to restore and turn over. The Seattle area is still seeing decent appreciation so we haven't made any decision about when to resell, likely in a year or two depending on the market. Our understanding is for a year the tax rate drops to 15% and then if we occupy for 2 out of five years there won't be capital gains (up to the limits). Our present house is very marketable as a rental so we are considering moving into the fixer upper for the tax benefits. It will be vacant 6-12 months while I work on it. Are there methods to show that we occupy the house while I am working on it? What's the best stragedy here? If market conditions are really good in less than 1 - 2 years, I'm willing to simply take the tax hit.