Capital Gain Taxes on Home sales in LA?

[scootertrash]

If you are selling a house (my residence), how long do I have to live there to get out of Capitol Gains Tax if I sell it? OR can I get away from that? Can anyone shed any light on this?

[ONE LOVE]

Here in Chicago as long as you reinvest the gains in another home of the same value you do not have to pay the tax. Not sure how it works down there.






If you are selling a house (my residence), how long do I have to live there to get out of Capitol Gains Tax if I sell it? OR can I get away from that? Can anyone shed any light on this?

[Ritten]

I want to say it's two years in Louisiana. Maybe Chappy can ask Stacie for us.

[chappy]

Capital gains tax is a Federal tax and you pay a lower rate for Long Term Capital gains, property held at least a year. The re-invest rule was obsoleted in the Tax Relief Act of 1997
I am pretty sure Louisiana only taxes earned income and not capital gains.
Her is info on the new rules for sale of main residence

http://www.bankrate.com/brm/news/real-estate/20041018a1.asp

[scootertrash]

Thanks Chap!

[jason70360]

We purchased some property an sold it 366 days after purchase. Our profit was added to our annual income tax papers. I believe the state tax was near 10% but the fed was below 5%. I am not sure if this is a standard % or if it varies with you total income.

Three letters........ C P A

[chappy]

State income tax is based on your Federal return, so the long or short term capital gains you pay as part of your Federal income tax is factored into your state tax bill but there is no seperate itemization of capital gains on state tax returns. Our company financial guy does tax returns on the side and he just confirmmed this for me.

[scootertrash]

So does this 1 or 2 year time frame exist to make the seller exempt from Capital Gains Tax?

[chappy]

So does this 1 or 2 year time frame exist to make the seller exempt from Capital Gains Tax? From what I understand, the property must have been your primary residence for a total of two years out of the 5 years prior to the sale in order to exempt the profit from capital gains tax. (up to 250,000)

[dewnmoon]

http://www.irs.gov/taxtopics/tc409.html