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Author: PharmBoi One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121150  
Subject: Capital Gains tax Date: 8/12/2004 1:05 AM
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cross-posted from the buying/selling house board...

Related somewhat to my prior questions;

As I couldn't met the June 30 deadline to avail of the capital gains allowance under the 2-year rule, I renewed the lease for another year and am resigned to the fact that I will have to pay capital gains sometime down the road, whether or not I avail of Section 1031.

When I sell, what valuation do I put on the property, if?

I bought it for $150k but when I converted from residential to commercial, the property was deemed to the worth $300k and was taxed and insured at that level.

Similar houses are currently selling in the low $400k's, in an agressive buyers market. Would it be fair to say that the taxable profit on my investment is $100k ($400k - $30k), if I were to sell today?

Could the other $150k of the profit be exempt from capital gains as it is below the $250k threshold as the property was my primary residence for the preceeding 4 (continuous) years?

I'm googling, but offhand does anyone know if there is a precedent?

PB






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