Capital Gains Exclusions

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Real Estate

Capital Gains Exclusions On the Sale of Your Main Home

As a Local Tax Preparer I know a thing or two about "Excluding Capital Gains Tax" on the sale of your Main Home.

If you happen to have more than one residence, it can get a little tricky.

Principal Residence in the eyes of the IRS for tax purposes has many determining factors. You're going to want to know them before you decide to make a move!  Your "Principal Residence" can be anything from a: conventional home, condo, mobile home, even a boat, if it's properly equipped with all the right facilities, can be considered your main home.

The difficulties arise when you split your time between two different properties during a year. Simply put, the IRS says that your principal residence is the home you own and use as a residence for “a majority of the time during the year.”

Other factors IRS might consider in the determination:

Location - in relation to your place of employment, where family members reside, where you get not only your mail but your bills, where you register to vote, your car & license...

The IRS is looking at many factors and you should be too!

My knowledge and expertise will prove invaluable to you in the moving process whether you are buying or selling!