Quote:
Originally Posted by Dan
dude...
http://en.wikipedia.org/wiki/Capital..._United_States
Primary residence
Percent of personal income from capital gains and dividends for different income groups (2006).
Under 26 U.S.C. ยง121[20] an individual can exclude, from his or her gross income, up to $250,000 ($500,000 for a married couple filing jointly) of capital gains on the sale of real property if the owner used it as primary residence for two of the five years before the date of sale. The two years of residency do not have to be continuous. An individual may meet the ownership and use tests during different 2-year periods. Both tests must be satisfied during the 5-year period ending on the date of the sale |
Your quotation refers to primary residence. Even after you edited it, still only applicable to primary residence. Even if those same rules applied (which they do not,) you would
still not be assessed taxes unless your
profit from the sale exceeds 250,000/500,000.
There are numerous ways around capital gains if you are running a for profit home flipping business. Of course you still pay tax, but 30% is a far cry from reality.
Google 1031 tax exchange.
edit: Also, this bickering is pointless.