Advice Topics

Top Contributors (View All)

Chris Yochum
Dickson Realty

Reno, NV

123 Answers
Lisa and Greg Harris
eXp Realty, LLC

Columbia, SC

91 Answers
Marty & Abby Champagne
RE/MAX Market Place

Oak Creek, WI

83 Answers
Julianne Clark / Your Lowcountry Realtor
Charter One Realty

Beaufort, SC

72 Answers
Steven Hunt
Real Broker NY LLC

NEW YORK, NY

60 Answers
Lynne Pruell
Realty 100 LLC

South Barrington, IL

47 Answers

Find a Top Real Estate Agent Near You

When would I need to sell to avoid paying capital gains?

I lived in a condo from 2018-2023 but then moved out and have been using the property as a rental. How soon would I need to sell it to avoid paying the capital gains tax in Florida? The property is worth $160,000 currently, the property was put in my name by a relative that paid $90,000 for it.

Asked By Danielle | Saint Petersburg, FL | 131 views | Selling | 3 months ago

Answer(2)

Novice

1 Answer

Chad Basinger REALTOR, CPA, CFP,

eXp Realty of Southern California, Inc.

(73)

Hello Danielle, It is great to see you being proactive and considering tax ramifications. I am a REALTOR, who also has an active CPA license and CFP certificate. When it comes to capital gains taxes and real estate, as long as you have lived there for 2 of the last 5 years, you will be able to take advantage of the $250,000 capital gains exemption amount. In this case, your gains are well below the 250K amount, so would not have any capital gains taxes at this stage. To answer your question regardless of this, the 2 out of 5 year requirement would be met as long as you close on that property in 2027 (specific date depends on when you moved out of it). Good luck!