Quote:
Originally Posted by Lisa22
Can anyone give me a quick and dirty refresher? Here is my circumstance: Bought a CV in December 2020. Rented it for two years, then became a FT Florida resident and have lived in TV since 2023. Filed Federal and State taxes for 2022 in another state.
If we sell and buy another property here, I understand that there is no Florida Capital Gains tax but the Federal Capital Gains tax still applies. However, in Florida the rules are that one must own the property AND be a Florida resident for at least two years to avoid any Capital Gains? I do know to take the sale of the property and add any expenses due to updating the property in order to calculate the left over equity for which I will have to pay taxes. Capital Gains are also dependent upon income level as well.
Am I correct or can someone correct me on any of the above? Thank you in advance.
We do not have a Trust set up in Florida yet - should we do that first? We would like to sell/buy in the very near future.
-Lisa
|
You will only pay capital gains at the federal level, since there is no state tax in Florida. If you lived in the home for 2 years, you would be exempt from those capital gains up to $250k for single, $500k for married. Yes, add every expense you can to increase the cost of the home, which reduces your profit and capital gains.