Quote:
Originally Posted by P-3 Guy
If and when you sell, and if you meet the primary residence requirements, you can exclude up to $250k (if filing single) or $500k (married filing joint return) of profit from capital gains taxation. And for any profit from a qualifying primary home sale that does get taxed as a capital gain, the tax rate maxes out at 20% and could be as low as 0%- certainly better than being taxed as ordinary income. Yeah, having to sell your home because you can't afford the property tax bill sucks, but if your profit is so large that paying capital gains tax is in the mix, some might see that as a positive.
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This is a non-primary house so it doesn't get any of the benefits you are talking about except 20% rate cap