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Author: SnootFool Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121571  
Subject: Re: Capital Gains Taxes Date: 4/20/1998 8:59 PM
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<My grandparents are retired and are considering selling some cabin property they have owned for
25 years. They currently fall within the 15% tax bracket, so I understand that under the new capital
gains laws, the gains on this property will be taxed at 10%. They are over 65. Is there anything they
can do to avoid paying capital gains altogether?>

You might also look at whether your grandparents can satisfy the requirement of having lived in the cabin for at least 2 years (24 months, technically) of the last 5 years (again, 60 months). AFAIK, these 24 months do not have to be continuous nor the last 2 out of 5 years. If so, under the new rules they may be able to avoid *all* capital gains on the sale, up to a $500,000 joint limit. It may behoove your grandfolks to take an extended vacation until they accumulate the 24 out of 60 magic number. Look into it!
Chris S.
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