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What are capital gains tax when selling a second/vacation home for someone who is 60 years old and the home is owned for 5 years?

 
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Level 15

What are capital gains tax when selling a second/vacation home for someone who is 60 years old and the home is owned for 5 years?

Your age has nothing to do with it.  And since it was not your primary residence, but a "second" home, you are subject to capital gains on it.  The 2 to 5 year exclusion on gains is for a home that was your primary residence.

 

SALE OF HOUSE

 

If your gain was more than  $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return.  Whether you re-invested the gain in to another house is irrelevant.  If you  have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)

If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Anonymous
Not applicable

What are capital gains tax when selling a second/vacation home for someone who is 60 years old and the home is owned for 5 years?

if this was not the taxpayer's principal residence for 2 out of 5 years before sale, there is no principal home sale exclusion.  the sale must be reported on schedule D. if there is a loss it is not deductible.

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