Quote:
Originally Posted by nordic tug
If you’re a Florida resident and later on decide to sell your house in another state, you may owe the full capital gains tax on the amount of your gain. No exemptions if it’s not your primary residence anymore.
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The IRS rule is that in order to avoid paying capital gains tax on the sale of your house, you must have used it as your
principal residence for 2 of the 5 years immediately preceding the sale of the home.
So, if you declare your Florida home as your primary residence in order to save on taxes on your home up north, you had better sell that home up north within 3 years of declaring your Florida home as your primary residence or else you may (likely WILL) owe capital gains taxes on the sale of your home up north.
Of course, if you don't have much capital gain on your home up north, that's not much of a problem, but if you have several hundred thousand in capital gain in your home up north, then be careful about when you declare your Florida home as your primary residence because it could come back to bite you when you finally do sell the home up north.
Here's an article that explains that. It matters not only how much time that you spend at each location, but also how you demonstrate your intentions such as by where you register your vehicles, where you register to vote, where you pay state income taxes (if any), and what address you list as your home address on your Federal 1040 tax forms.
https://www.sapling.com/8110759/irs-...mary-residence
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