My question is: US-specific QUESTION: How long do you have to live in a house before selling to avoid taxes --------------------------------------------------------------------------- david ingram replies: Under US law, you have to have lived in the house for 24 out of the last 60 months before sale to escape tax on up to $250,000 per owner. The profit is still recorded on Schedule D and then an equivalent amount is deducted with a notation that it has been deducted under Section 121. There is an exception where you have been in the house less than 24 months. If you have been transferred, injured, had a baby, divorced, married or had another major situation happen that means the home is not suitable (One lady here in Vancouver just had sextuplets for instance), you can prorate the $250,000 per person by the number of months you did live in it. So, (as an example) if you bought a house and moved in on April 1, 2006 and suddenly have to sell on March 31, 2007, you would have been in the house for 12 months. Providing there was a valid and good reason to sell, you would get up to 12/24 x's $250,000 or $125,000 tax free. ----------------------- David Ingram's US / Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists My Home office is at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation in connection with personal or business affairs such as at www.centa.com <http://www.centa.com> . If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" David Ingram gives expert income tax & immigration help to non-resident Americans & Canadians from New York to California to Mexico family, estate, income trust trusts Cross border, dual citizen - out of country investments are all handled with competence & authority. This from "ask an income trusts tax and immigration expert" from www.centa.com <http://www.centa.com/> or www.jurock.com <http://www.jurock.com/> or www.featureweb.com <http://www.featureweb.com/> . 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