rumor about capital gain exclusion for primary residence

[pepsi]

I heard of a rumor about capital gain exclusion for primary residence

They said in the foreclosure prevention act of 2008, if you stay in your home for 2 year in the last 5 years, you can only qualify for 2/5 (40%) of the exclusion amount.
So, if you have 500K gain, you will need to pay capital gain tax for the 300K
Has anyone heard of this ? I was told it was from a WSJ article this month, but I couldn’t find it anywhere. Google search yield a lot of old article about the tax law, so it is hard to know if this has been changed because of the foreclosure prevention act of 2008.

Does this apply to all homes or is it for participanters only (if this is true) ?

[PadreBrian]

Sounds fishy. We would talked that one to death here if it was true. I’ll keep an eye out.

[PadreBrian]

Sounds fishy. We would talked that one to death here if it was true. I’ll keep an eye out.

[PadreBrian]

Sounds fishy. We would talked that one to death here if it was true. I’ll keep an eye out.

[PadreBrian]

Sounds fishy. We would talked that one to death here if it was true. I’ll keep an eye out.

[PadreBrian]

Sounds fishy. We would talked that one to death here if it was true. I’ll keep an eye out.

[BGinRB]

Partially correct.
It applies to houses purchased after the end of this year:
http://online.wsj.com/article/SB121798585043615583.html?mod=googlenews_wsj

[BGinRB]

Partially correct.
It applies to houses purchased after the end of this year:
http://online.wsj.com/article/SB121798585043615583.html?mod=googlenews_wsj

[BGinRB]

Partially correct.
It applies to houses purchased after the end of this year:
http://online.wsj.com/article/SB121798585043615583.html?mod=googlenews_wsj

[BGinRB]

Partially correct.
It applies to houses purchased after the end of this year:
http://online.wsj.com/article/SB121798585043615583.html?mod=googlenews_wsj

[BGinRB]

Partially correct.
It applies to houses purchased after the end of this year:
http://online.wsj.com/article/SB121798585043615583.html?mod=googlenews_wsj

[(former)FormerSanDiegan]

It applies to houses purchased after the end of this year:

Actually it applies to SALES after the end of this year. It applies to ALL homes, even those bought before 2009. However the clock for counting the number of days of non-qualified use starts Jan 1, 2009.

The taxable gain is Dnon/Dtot
where Dnon is the number of days of non-qualified use after Jan 1, 2009. Dtot is the total number of days used (assuming you lived in it as a primary residence in 2 out of 5 years).

Details outlined here under item #3.
http://tinyurl.com/58q586

I am sure people will be confused by this for the next several years. I bet that they eventually just “simplify” it in a way that results in higher taxes.

[(former)FormerSanDiegan]

It applies to houses purchased after the end of this year:

Actually it applies to SALES after the end of this year. It applies to ALL homes, even those bought before 2009. However the clock for counting the number of days of non-qualified use starts Jan 1, 2009.

The taxable gain is Dnon/Dtot
where Dnon is the number of days of non-qualified use after Jan 1, 2009. Dtot is the total number of days used (assuming you lived in it as a primary residence in 2 out of 5 years).

Details outlined here under item #3.
http://tinyurl.com/58q586

I am sure people will be confused by this for the next several years. I bet that they eventually just “simplify” it in a way that results in higher taxes.

[(former)FormerSanDiegan]

It applies to houses purchased after the end of this year:

Actually it applies to SALES after the end of this year. It applies to ALL homes, even those bought before 2009. However the clock for counting the number of days of non-qualified use starts Jan 1, 2009.

The taxable gain is Dnon/Dtot
where Dnon is the number of days of non-qualified use after Jan 1, 2009. Dtot is the total number of days used (assuming you lived in it as a primary residence in 2 out of 5 years).

Details outlined here under item #3.
http://tinyurl.com/58q586

I am sure people will be confused by this for the next several years. I bet that they eventually just “simplify” it in a way that results in higher taxes.

[(former)FormerSanDiegan]

It applies to houses purchased after the end of this year:

Actually it applies to SALES after the end of this year. It applies to ALL homes, even those bought before 2009. However the clock for counting the number of days of non-qualified use starts Jan 1, 2009.

The taxable gain is Dnon/Dtot
where Dnon is the number of days of non-qualified use after Jan 1, 2009. Dtot is the total number of days used (assuming you lived in it as a primary residence in 2 out of 5 years).

Details outlined here under item #3.
http://tinyurl.com/58q586

I am sure people will be confused by this for the next several years. I bet that they eventually just “simplify” it in a way that results in higher taxes.

[Author]

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