IRC section 121 tax exemption

Dear Steve: Regarding capital gains tax on the sale of a second home in New  Jersey. How long do we have to sell this home to avoid paying capital gains tax?  We are now (since Jan'07) residents of FL. Thanks for your help.

Dear J:  From your question I gather that you had the home in NJ as your principal residence until January 2007.  After that you made Florida your principal residence.  In order to qualify for tax exemption under IRC section 121 you must have owned and lived in the home for 2 out of the last five years.  For you that will no longer be true in January 2010.  Therefore you have 18 months in which to sell the NJ property and still qualify for the exemption.  Sincerely,

Steve Hickox
Attorney / President

1031x.com has grown to provide many services to our clients as Castle United!
Click here:  http://www.CastleUnited.com/

1031x.com, Inc.
2120 S. Birch St.
Denver, CO 80222
303.504.0144
Toll Free 888.899.1031
Fax 303.715.1012

infox@1031xcastle.com