Cap Gains on 2nd Home? (by JamesD [CO]) Oct 22, 2012 2:42 PM|
Cap Gains on 2nd Home? (by BillS [CO]) Oct 22, 2012 3:20 PM
Cap Gains on 2nd Home? (by Marv [IL]) Oct 23, 2012 5:05 AM
Cap Gains on 2nd Home? (by mike swmo [MO]) Oct 23, 2012 1:01 PM
Cap Gains on 2nd Home? (by don [PA]) Oct 24, 2012 8:47 PM
Cap Gains on 2nd Home? (by JamesD [CO]) Posted on: Oct 22, 2012 2:42 PM
State Specific Question About: COLORADO (CO)
We own a piece of mountain property with our good friends. We're thinking of selling soon, since the RE market seem to be improving in CO.
This property has been our 2nd home, though we've rented it frequently nearly every winter since we've owned it - reporting all income and some of the expenses from the periods that it was rented. The mortgage that we took out on it had a classification for the 2nd home too.
Question: is this property subject to Capital Gains after the sale, just like an Investment property or would it be free of Capital gains just like our house would be?! What is the criteria?
Thx in advance -
in Denver, CO
Cap Gains on 2nd Home? (by BillS [CO]) Posted on: Oct 22, 2012 3:20 PM
I don't know the ins and outs of this but I do know the test for primary residence capital gains exceptions. Must have lived in for 2 of last 5 years. Doesn't really sound like you meet that. It would not classify as primary residence unless you lived there (one test is whether or not you got your mail there). On top of that you have joint ownership.
Now I don't know if a 2nd home has the potential for capital gains exception apart from being your primary residence. I seriously doubt it. --75.160.xxx.xxx
Cap Gains on 2nd Home? (by Marv [IL]) Posted on: Oct 23, 2012 5:05 AM
I does not qualify for the residence exclusion of gain. You will pay tax on any profit. --173.15.xx.xxx
Cap Gains on 2nd Home? (by mike swmo [MO]) Posted on: Oct 23, 2012 1:01 PM
remember the 2 years of 5 does NOT have to be continous 2 years. --216.41.xxx.xxx
Cap Gains on 2nd Home? (by don [PA]) Posted on: Oct 24, 2012 8:47 PM
Are you talking about Federal Capital Gains tax? If so, that is not a question specific to the state of Colorado. Are you talking about some type of state tax? --68.81.xxx.xxx