Clemson Fan
TUG Member
Can somebody please help me with a quick tax related question? I’m going to be moving to Hawaii in July and we’ve currently lived in our house since June 2004. There’s somebody that’s interested in buying our house now (came to my front door twice out of the blue) b/c he really likes it and he’s worried about interest rates going up in the next couple of months. He’s willing to buy the house and then allow us to rent it until we move in July.
I don’t know if I want to do this b/c I’m worried about the tax implications. I know I will lose my mortgage interest tax deduction for the months I rent which may be palatable considering the savings of not paying a large real estate commission and not being worried about having to sell it in a couple of months. However, the question I have is whether I will lose the ability to not be taxed on the capital gains if I’ve lived in the house a few months short of 2 years? I don’t think we’re going to buy a house in Hawaii and will probably be renting there for a year or more due to certain job related uncertainties we have.
]TIA for any help provided.
I don’t know if I want to do this b/c I’m worried about the tax implications. I know I will lose my mortgage interest tax deduction for the months I rent which may be palatable considering the savings of not paying a large real estate commission and not being worried about having to sell it in a couple of months. However, the question I have is whether I will lose the ability to not be taxed on the capital gains if I’ve lived in the house a few months short of 2 years? I don’t think we’re going to buy a house in Hawaii and will probably be renting there for a year or more due to certain job related uncertainties we have.
]TIA for any help provided.
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