Hi. I own 2 homes in California, one as my primary residence and one as a rental (income source). I'm just now changing residences, prompted in part because I saw that in order to sell a home and not be charged Capital Gains taxes, I'd need to live there and have it as my primary residence for 2 years before I could sell it and buy a different property and not be hit with a big tax.
I recently read that I would not be hit with a Capital Gains tax, even if I didn't live in the house as my primary residence for 2 years, so long as my income is below a certain level and I don't sell the house for more than $300k than I paid for it. Is this true? If so, what is the income level I would need to be below? Would I need to buy a different house within a year with the money from that sale? Does it have to be a house or could I buy property (instead of a house). Are there any other rules that would apply?
Thank you,
Curious in California
