The Capital Gains Exclusion in the Housing Assistance Tax Act of Two Thousand Eight

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The new rules enshrined in i r c section one 21, b four, stipulate that the capital gains exclusion is specifically available only for periods during which the property was actually used as a primary residence. Gains are assumed to be pro reta over the holding period. Any other time since january first two thousand nine that the property was not used as a main residence is deemed non qualifying use. Those gains are not eligible for the exclusion.

#354: Charlie in Cali has enough money saved to pay cash for a house, but she and her husband decided to finance their home, instead. They’d rather invest the money and arbitrage the spread. But one problem: how can they keep themselves from touching this investment?

Jay is choosing between Fidelity and M1 Finance, and has questions about tax loss harvesting.

Nicole and her siblings will be inheriting some properties that they eventually plan to sell. How should they set up or organize these properties among so many owners? Should one person take the lead? Do they need a shared business account? Also, how should they evaluate a property and make sure they get a good deal when they sell?

Ed owns three homes, two of which he plans to sell in the next few years. He plans to live in them long enough to establish residence and take the capital gains exemption when they sell. Is his plan for handling the taxes solid?

We answer these four questions in today’s episode. Enjoy!

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