+ Reply to Thread
Results 1 to 2 of 2
  1. #1
    neilwilson Guest

    selling house capital gains tax?

    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
  2. #2
    abezon is offline Senior Member
    Join Date
    Aug 2002
    Location
    Washington
    Posts
    3,484
    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.
    This post does not constitute legal advice, nor does it create an attorney-client relationship. Postings are based only on the information provided and you should consult an attorney in your area before relying on information contained in this post.

Similar Threads

  1. Replies: 4
    Last Post: 07-14-2007, 05:45 AM
  2. Capital Gains on Selling a house to my LLC
    By justinl in forum Tax Law
    Replies: 5
    Last Post: 12-16-2005, 09:57 AM
  3. Capital Gains on Selling a house to my LLC
    By justinl in forum Buying & Selling a Home
    Replies: 1
    Last Post: 12-13-2005, 07:19 PM
  4. Selling house, buy another + capital gains
    By bklyn_teach in forum Other Real Estate Law Questions
    Replies: 3
    Last Post: 07-15-2004, 07:34 PM
  5. Capital Gains Tax - Selling a House
    By mthompson in forum Other Real Estate Law Questions
    Replies: 0
    Last Post: 06-20-2000, 09:54 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

© 1995-2012 Advice Company, All Rights Reserved

FreeAdvice® has been providing millions of consumers with outstanding advice, free, since 1995. While not a substitute for personal advice from a licensed professional, it is available AS IS, subject to our Disclaimer and Terms & Conditions Of Use.