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selling house capital gains tax?

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neilwilson

Guest
What is the name of your state? nj
What is the name of your state? Nj
we are trying to sell our house.
its is a legal 2-family, and we have been there for 10+ years we never rented it out.
we live in one family and the other is often been used by us, closed or our relative who come to vist us from out of country or out of state and stay in the other apartment for 6 months or so- and pay the utilites since they stay there for long perid, but no rent, did that 2 times in last 10 years- 6 months twice.

my questions is:
are we liable for any capital gain taxes or any other taxes when we sell this place?

( i understand that 500K is tax free from capital gains for couple as os 2001) on personal residence , we use it as a personal residence only, we have been here for 10+ years.
please reply asap..


thanks
 


abezon

Senior Member
Yes. Renting to relatives at less than fair market value constitutes personal use by you, rather than rental use. You may exclude up to $500,000 of capital gains on the entire duplex.

Ask your county treasurer who pays the excise taxes when you sell.

Check out Title 54 of the NJ Permanent Statutes to see if you can claim a similar exemption on your NJ state return. Or just call the local H&R Block.
 

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