Selling a house

[april520]

What is the name of your state? Virginia
I just recently built a house and am having to sell due to divorce. I heard that if you haven't lived in the house for 2 years and sell it then you have to pay capital gains taxes when you sell. Is this true?

 

[jkruler]

Yes, you will have to pay capital gains on the profit, but if you just built the house it most likely will not have appreciated much.

 

[Snipes5]

Actually not true.

You will probably be able to claim a "reduced exclusion". For info on what that is, search the old posts in this forum, I gave a lengthy explanation not too long ago.

A divorce is considered one of the allowable circumstances for claiming a reduced exclusion. You will be able to exclude gain based on the number of months you lived in and owned the house, as a proration on the total exclusion amount of $250,000 per individual/$500,000 per married couple.

Snipes

 

[jkruler]

Actually not true.

You will probably be able to claim a "reduced exclusion". For info on what that is, search the old posts in this forum, I gave a lengthy explanation not too long ago.

A divorce is considered one of the allowable circumstances for claiming a reduced exclusion. You will be able to exclude gain based on the number of months you lived in and owned the house, as a proration on the total exclusion amount of $250,000 per individual/$500,000 per married couple.

Snipes

I'm sorry, Snipes is correct, I read the post quickly and missed the "divorce" part--this is what happens when I post at 2:45 in the morning.