Sentences with phrase «treated as your principal residence»

So rental properties, cottages, vacation properties, etc. may be subject to capital gains tax if they don't qualify or you don't elect to treat them as your principal residence — even if they're in another country.

You may also be limited in doing so if you had a previous principal residence that you sold during the time you have owned the cottage and you treated it as your principal residence, with no capital gains tax payable.

It may make sense to elect for one or the other to be treated as your principal residence between you and your ex to generate the smallest tax liability.

Not exact matches

If you are going to treat it as the sale of principal residence, make sure you act soon.

If you move out and rent your home, you can continue to treat the house as your principal residence for four additional years, or possibly more if you move as a consequence of a change of your place of employment with your employer.

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.

First, a taxpayer may have property that is treated as investment property as of the date of the sale, but had previously used it for a principal residence two or more years during the previous five years.

In Revenue Procedure 2005 - 14, the Internal Revenue Service explains how a taxpayer may treat property that would qualify for the Section 121 home sale exemption as partially investment property and partially principal residence.

You could treat the cottage as your principal residence, with the transfer to your stepchildren therefore being tax - free.