How can I avoid capital gains taxes when I sell my villa or short term vacation rental home?

You can sell your primary home every two years and pocket up to $500K in capital gains.

You can sell your primary home every two years and pocket up to $500K in capital gains under the Taxpayer Relief Act of 1997.

How a Second Home Can Be Your Best Investment: New, Tax-Free Methods for Using a Vacation Home for Recreation, Retirement…AND Investment! (Paperback)


It’s only about $12 at Amazon
Below is an excerpt from the excellent book,“How a Second Home Can Be Your Best Investment: New, Tax-Free Methods for
Using a Vacation Home for Recreation, Retirement…AND Investment!
(Paperback 2004) “

“The new second home can also be a long-term tax shelter for future
retirement. For

“The rental home could be converted to a principal residence after it has
been “aged”… Then the former rental property could later be sold after the
qualifying period of use as a principal residence (two years) and the
(capital gains) exclusion claimed for the sale.” (page 5) In other words,
you can convert your rental property to a principal residence for two years
then sell it as a primary residence, and claim a capital gains tax
exemption.

Click the link below to buy this book at Amazon for only about $11:

http://www.amazon.com/exec/obidos/ASIN/0071429700/br-20

The book also describes using 1031 exchanges to defer payment of capital
gains taxes.

Speak Your Mind

*