Will I have to pay capital gains for selling a residence and an additional building on the lot?

Answer by  Rebecca1322 (17)

Your main residence can be exempt from capital gains tax IF you have owned and lived in the home the previous two years and roll that gain into another residence.

Answer by  BrianSJ (524)

Yes, you will have to pay capital gains on the additional building's value (minus the costs of construction) and on the appreciation of the residence. However, if the house is your primary residence, the you will qualify for the homeowner's exemption that can cancel up to $500,000 of capital gain.

Answer by  Chaneygirl (1755)

If you have lived in and owned the residence for at least 2 years, the residence sale would be tax free assuming you made less than $250,000 single or $500,000 joint. Was the additional building used for business or rental purposes? If so, there could be capital gains on that portion. If it was just used personally, no.

Answer by  cgroverla (516)

If you have lived in your home two years, you can exclude $250,000 of gain ($500,000 if married). The additional building is included unless it was business property.

Answer by  CODY123 (19)

It all depends if the residence is your personal residence that you call you main home. Also you will need to have lived in and own the home for at least 2 years out of the last five years. The additional building would also be included as long as it is all in the one deed.

Answer by  worker3825 (26)

No, capital gains only applies to stocks, shares or bonds. Capital gains are paid when you buy, sell or trade any stocks, bonds or shares for a profit. Captial gains will not apply to selling of a residence.