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Author: endorphin Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121316  
Subject: Cap Gains on 2nd home sale this year Date: 6/23/1999 1:47 PM
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Sold primary residence April 30, 1999. Met the 2 year rule to exclude cap gains tax. Moved into 2nd home on April 30, 1999 we owned it since 1993 and rented it out. We are selling 2nd home on July 30, 1999 with a cap gain of 32000. I believe my husband and I can prorate the 500000 exclusion on the sale of our 2nd home as (90/730)*500000=61644 where we are using 90 days as length of time it was primary residence. If I interpret the rules right our gains up to 61644 from the 2nd home sale are not taxed so no tax is owed on either home sale. If we wait until after Aug 19 to sell the home we will have to produce a qualifying reason for the move (ie job change or medical). Does anyone know if there are any special rules that will disqualify our prorated cap gains exclusion because we moved into a rental and converted it to primary residence and sold shortly thereafter? Are there any rules limiting a couple to one excluded sale every two years? Any other tips to keep out of trouble with the IRS?
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