Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
New Tax Bill Affect on Capital Gains
Posted by: len3hardy, December 20, 2017 04:43PM
Anyone know whether the new tax bill makes any changes to the tax rules related to capital gains of your residential property?

Specifically any changes to (1) the capital gains rates associated with your adj gross income amount, (2) the exemption amounts (currently 500,000 for a married couple), and (3) the length of occupancy (currently 2 yrs in the last 5)?

Thanks, Len


Re: New Tax Bill Affect on Capital Gains
Posted by: DeeDee, December 20, 2017 08:20PM
Regarding your #2: Taxpayers will be still able to exclude up to $500,000 in capital gains when the primary home is sold so long as they have lived there two of the past five years.

Re: New Tax Bill Affect on Capital Gains
Posted by: triad, December 21, 2017 11:15AM
The bill changes this to five of last eight years

Re: New Tax Bill Affect on Capital Gains
Posted by: len3hardy, December 21, 2017 04:08PM
I was afraid of that. Does it take effect immediately, or is there some grace period - one or two years hopefully?

Re: New Tax Bill Affect on Capital Gains
Posted by: ruth, December 21, 2017 05:00PM
The final bill dropped all proposed changes to the exclusion for gain on the sale of a residence. The 2 of 5-year rule still applies.

Re: New Tax Bill Affect on Capital Gains
Posted by: len3hardy, December 22, 2017 12:34AM
Great news. Thanks

Re: New Tax Bill Affect on Capital Gains
Posted by: triad, December 22, 2017 12:45AM
Sorry, I thought I had skimmed the final bill.



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