AboutAl Romero, Ltrs. Expertise I can answer questions relating to general Real Estate in Pennsylvania including questions relating to Real Estate Investments and Landlord issues. I cannot delve out of my expertise ie;as in the practice of Law.
www.yorkhomeguide.com
Experience 5 years as an Investment property Advisor with a local Investment firm and 3 years of general practice.
Organizations National Realtors Association
R.A.Y.A.C
Pennsylvania Realtors Association
H.A.R
Publications york listings
Central Pa Real Estate Investors guide
Education/Credentials Center of Real Estate Law and Sales Practice.
Ltrs certified.
housevalues agent certification.
Expert: Al Romero, Ltrs. Date: 8/15/2007 Subject: Selling my home in PA
Question I am planning on selling my home in Hawley, PA. I have owned it for 3
years, but it has been my primary residence for a little over a year.
Can I still claim it as a primary residence so I do not have to pay
capital gains tax? (I lived in a rental before this home and spent some
time in the home). If I have to pay capital gains, how much would that
be? Thank you.
Answer Michelle,
The Taxpayer Relief act of 1997 drastically changed the tax laws concerning capital gains on personal residences up to $250,000 per person or $500,000 per couple.
For example, let's say that you and your spouse bought your current home for $300,000 in January, 2002. You sold it for $450,000 in September, 2007. Your $150,000 gain is significantly less than $500,000, so you won't be taxed on the gain.
To qualify for this gain exclusion, the seller must have occupied the property for two of the five years before the sale. There is no limit on how many times you can take the exclusion, but it can only be taken once every two years.
In your case it sounds like you may have lived in the home totaling at least 2 years in the past 5 years then the exclusion would apply to you. Of course I would consult your tax advisor before you put it on the market.
~AL
