Posted by traemgaarna on February 06, 2007 at 20:20:52:
If a homeowner (married couple) has owned and lived in a primary residence for several years and tears the house down to the dirt and rebuilds a newer, bigger house on the same lot and sells it immediately (at a significant profit) without ever occupying the new house, can the 2-year cap gains exclusion (up to $500k) be claimed?
If not, what steps could be taken prior to the start of demolition to minimize the tax impact?
Thanks for any input!