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Referred by the Home Guru Re: Selling a Duplex in Ohio

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D

Dilemma

Guest
I will try to make this a bit clearer, however, the situation remains the same.I own a two family house and do not rent the second apartment (I have not done so for two years).This is my primary residence and has been for the past eighteen years.I rented the second apartment off and on for about fifteen of those years.Now I am considering selling this to purchase a Condo(too much work for me now) and I am getting two views on the subject the First: This is my principal residence and so long as I purchase another primary residence I will be able to defer any tax since I have not used this as investment property for two years. The Second: I will have to pay capital gains taxes on half of the profit because I did rent it out at one time. Even if I live here for 30 more years this will be so. No exceptions! Is either true? Is there a grey area? Capital gains taxes will eat up my equity naturally and I may not be able to purchase any home I would care to live in with the proceeds of any sale less the tax. Thus the dilemma!
 


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