Agent

How can I avoid capital gains tax?

5-year rental forfeits $250,000 home-sale tax exemption

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

DEAR BOB: Please tell me my tax adviser is wrong. More than five years ago, I rented my condo to tenants who have been there ever since. Last month they moved out because they bought a house. Now I have decided to sell my condo, which has appreciated in market value by about $175,000, maybe more. Before I rented the condo, I lived in the condo for about four years. When I phoned my tax adviser, she said my condo sale will be subject to capital gains tax. Is there any way I can qualify for that $250,000 tax exemption you often discuss? – Robert R. DEAR ROBERT: Yes. You can move back into the condo and make it your principal residence again before selling it after at least 24 months of occupancy. Purchase Bob Bruss reports online. Then you will meet the Internal Revenue Code 121 requirement of principal residence ownership and occupancy for at least two of the five years before its sale. Because you have rented your condo for the last five years to tenants, you clearly don't m...