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by CareyBot

DEAR BOB: My fiancé and I live in her condo, which she bought in January 2003. We just signed a contract to buy a house together. It should be finished in September. She will probably earn about $70,000 capital gain on her condo when it is sold. Since she has owned it less than two years, will there be any capital gains tax to pay? – Anthony M. DEAR ANTHONY: Internal Revenue Code 121 allows principal residence sellers up to $250,000 tax-free sales profits (up to $500,000 for a married couple filing jointly). Because you are not married to the condo owner, and you are not on the condo title, only she can only qualify for the basic $250,000 exemption. Purchase Bob Bruss reports online. However, she has not owned and occupied the principal residence condo the required "aggregate" t...