I'm hoping someone on this helpful website can help.
I believe there is still the current law that to avoid capital gains, one must retain their primary residence for 2 years. However, is there any relief for the homeowner who is upside down?
I have a client who bought a home last September for $225,000. It is now only worth $190,000. He HATES the neighborhood and wants to move ASAP. I told him I still thought he had to retain it for at least 2 years, but he's adament he can move in one. With the values now far below what he originally purchased his current home for, there's obviously no gain. Can he move now with no tax liability? Can he move after one full year?
If anyone knows, please let me know. He'd like an answer today and I can't get hold of my CPA until Monday.
Thank you, in advance.
Juli Vosmik
Scottsdale, AZ
480-710-0739
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