Sentences with phrase «exchange of your principal residence»

Capital gains are exempt up to $ 250,000 ($ 500,000 if married) on the sale or exchange of your principal residence if you have lived in the home for the last 2 out of 5 years.

Not exact matches

In other words, a sale of a residence may be given split treatment; a portion may be treated as held primarily for investment, (which portion would be eligible for exchange under Section 1031), and a portion that would be treated as the taxpayer's principal residence.

Exemptions are generally granted when there is a loss on the sale of the property, a federal exclusion of the gain on the sale of a principal residence, the transaction involves a like - kind exchange, or for other situations resulting in no Maine income tax liability.

During the tax debate, the National Association of REALTORS ® was able to secure substantial wins for residential and commercial real estate, including retention of the rules for the exclusion of capital gain on the sale of a principal residence and preservation of 1031 like - kind exchanges for commercial property owners.

Many tax experts believe this change to the federal regulations legitimized the process of conducting a 1031 exchange into new property that the exchanger rents for awhile so it qualifies as rental property and then occupies as their principal residence.

In October 2004, new federal regulations were issued as to how long an owner had to have owned a principal residence they had acquired through a 1031 exchange before they could sell it and exclude some or all the capital gain under the Tax Relief Act of 1997.