Can I avoid or reduce capital gains on the sale of my summer home?
February 28, 2006
Date: Thu, 02 Feb 2006
I sold my mobile home in Florida after owning it 27 years. My primary residence is in Michigan. Can I avoid the capital gains tax or reduce it? We used the Florida home about 5 months out of the year.
Date: Mon, 06 Feb 2006
Whether the residence qualifies for an exclusion is a question of fact. The facts you have given to me don't meet the requirements. If you had asked before the sale, we might have discussed setting up an installment sale or something. Now you have to deal with the consequences of your actions. If you sold the property during 2006, look for any items you might own that could generate a capital loss to offset the gain. The most ideal item would be a "loser" stock that you can sell.
We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.
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