• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Avoid tax on vacation-home sale

by on
in Small Business Tax

Q: I am selling a vacation home. My daughter owns a lot where I can build a new house. Can I roll over the profit from the old home into the new home tax-free? R.C., Dunwoody, Calif.

A: To qualify for the tax exclusion for home sales, you must have owned and used the home as your principal residence for two of the past five years. But you do have a few possibilities: (1) Convert the vacation home into an investment property by renting it out. Then swap the property for another "like kind" property tax-free. It's permissible to set up a three-way exchange involving your daughter's lot. (2) Alternatively, you might establish the vacation home as your principal residence, and then sell it after two years.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/22735/avoid-tax-on-vacation-home-sale "

Related Articles...

    No matches

Leave a Comment