Capital gains and state residency

[setvector]

My parents live in Colorado, but are quickly becoming "Floridians" now that they are retired. Would they have to pay capital gains taxes on their old house in Colorado if they become residents in Florida before they sell it?

They already have a 2nd house in Florida that they are wanting to become their primary residence.


Thanks in advance all!

[Snipes5]

If, when they sell it, they have lived in it and owned it for two of the immediately preceeding five years, there will be no federal capital gains, provided there is a gain of no more than $500,000 on the sale.

I can't speak for the state of Colorado.

Snipes

[setvector]

Well they won't sell the residence in florida, they are going to live it in.. they are just concerned with having to pay capital gains on their house residence of 30 years in Colorado they now want to sell.

Originally Posted by Snipes5

If, when they sell it, they have lived in it and owned it for two of the immediately preceeding five years, there will be no federal capital gains, provided there is a gain of no more than $500,000 on the sale.

I can't speak for the state of Colorado.

Snipes

[taxcurious]

As Snipes said, if they lived in the house for two of the last five years they can exclude up to $500,000 gain if they file MFJ.