Selling Vegas House - less than 2 years capital gain?

[Vegasrental]

Hi,

I have a house in Vegas that I lived for 1 year and 10 months.  I had to move for a job out of state and i had the house rented the next month.  My tenant has decided to move into a larger house and now I am thinking of selling.   I read an article where Nevada is a state where there is no capital gain tax. 

I have recently purchased another house a few months ago in my current state.  Do I need to pay capital gain on the house in Vegas or since the tenant is leaving, is there a way I could make the 2 months up or no?  Hope this question makes sense.  

Thank you,

Robert

[Vanessa A]

Nevada does not have state capital gains taxes.  However, the federal government still will tax the sale of your home.

When you say make up the 2 months, what do you mean?  To meet the 24 month residency period?  

If your new workplace was more than 50 miles further from your home than your old workplace, you would still qualify for a partial exclusion on the sale of the home. 

[Vegasrental]

Hi Vanessa,

Thank you for responding so quickly!  I appreciate the feedback!  

Yes, to meet the 24-month residency requirement.  If this is even possible.   If there is no capital gain tax for NV, the federal tax rate will be off of what then because that's what I thought the tax would be off of.  

Thank you!

Robert

[RobertB4444]

No, no way to go back in time and get that two extra months.  The only way to get more time living in the house is to actually move back into the house.  Then your time residing in the house adds to the prior period.

However, as @VanessaA points out above, you are entitled to a partial exclusion of the gain.  And it'll be almost the full amount.  And since you've only had the house for three years-ish that will probably be enough to make it non-taxable.  But you should certainly enter the sale into TurboTax and check before you get any more stressed about it.

Good luck!

@Vegasrental

[Vegasrental]

Hi RobertB4444,

Thank you for the information!  Appreciate the assistance and you have answered all my questions.  

Thank you!

Robert