Re: persfin-digest V5 #23

From: greg.panayotti@swissbank.com
Subject: Re: persfin-digest V5 #23
Date: Tue, 16 Jun 1998 16:35:26 -0400

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>Date: Wed, 10 Jun 1998 23:04:07 EDT
>From: <Memills@aol.com>
>Subject: New tax laws on real estate capital gains
>
>I read in a book about the new real estate tax law which states that 
>one qualifies for no capital gains tax if a property has been one's 
>primary residence for 2 years, and then rented for 3 years (actually, 
>sold before that 3 year period is up).  The book seemed very clear 
>about this.   
>
>I've heard others say that it must be one's primary residence when the 
>house is sold, not a rental.
>
>Can anyone clarify this?
>
>Thanks...

(Usual disclaimers:  One should consult a real estate attorney for
the applicable laws as they pertain to them.  I do not consider
myself an "expert" and neither should you!)

>From what I've seen, tax law states that a person must hold a 
property for 5 years total.  Of those 5 years, the person must've 
lived in the property for 2 years total to get the full exemption.   
That's it.  I never saw anything that said when exactly you had to 
live in the property, as long as it was atleast 2 out of atleast 5 
years.  A copy of the new tax law can be found (for example) at 
www.schwab.com.  Look under investment advice/strategies.

G. Panayoti
Meadowlands Board of Realtors, NJ




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