Posted by Celeste on August 15, 2004 at 09:28:51:
Thank you for your response. If this property is “investment property”, does that make the 2 yr law void? What if I split this land into 4 parcels, sell off all but the 20 acres I live on? Could I sell the adjoining acreage without getting penalized by the 2 yr law? Thank you!!
Celeste
2-Year Law - Posted by Celeste
Posted by Celeste on August 12, 2004 at 07:31:18:
I have 56 acres I have listed to sell but have only owned for 1 year. What is the best way to get around the 2 year property owners law and sell without getting penalized by capital gains? The only way I know is a long escrow. Leave $1 or $10 in escrow until the 2 years is up. I would appreciate any new ideas. Thank you!
Re: 2-Year Law - Posted by Jason
Posted by Jason on August 13, 2004 at 01:31:57:
2 years only applies to personal residence, which you must live in, not raw land. After 1 year you get capital gains treatment (vs. perosnal income treatment) and also qualify to do a 1031 exchange.