Capital Gains Tax Question - Posted by Charles

import · April 5, 2004, 10:14am

Posted by Charles on April 05, 2004 at 10:32:02:

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import · April 5, 2004, 10:14am

Posted by Charles on April 05, 2004 at 10:14:20:

Will refinancing your home start the 2 out of 5 year time table?

In other words, if I purchased a home February 2003 and wanted to REFI it April 2004, will my time table start over at April 2004? Thus, I am subject to capital gains tax until April 2006?

Thanks, in advance!

import · April 5, 2004, 10:21am

Re: Capital Gains Tax Question - Posted by phil fernandez

Posted by phil fernandez on April 05, 2004 at 10:21:43:

If you purchased your home in Feb. 2003 as your primary residence and have lived in it, the clock starts ticking at that point. Whether you refinance or not has no bearing on capital gains.

So if you sold your home in Feb. 2005 your gain would be exempt from taxation assuming you lived in the home for the two years.