Apr 18, 2006
Principal Residences and Tax-Free Exchanges
Taxpayers can avoid tax on up to $500,000 of gain when selling their principal residence. Yet, all gain is taxable if the residence was acquired during the previous five years as part of a tax-free like-kind exchange. The 2005 Tax Act clarifies the conditions under which such gains are taxable.
Taxpayers can avoid tax on up to $500,000 of gain when selling their principal residence. Yet, all gain is taxable if the residence was acquired during the previous five years as part of a tax-free like-kind exchange. The 2005 Tax Act clarifies the conditions under which such gains are taxable.
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