Trying to read up and figure out a few things.
I have a home that's my primary residence - Say cost basis is 100k. I can sell it and pay no capital gains taxes as long as the profit is less than 500k (since I'm married).
But if I move to another house and make that my primary residence and rent this house then when I sell I will have to pay capital gain taxes if I'm gone more than 3 years (I believe).
Question is does the cost basis stay at 100k? Or does it change to what ever the value is when we decide to turn it into a rental and no longer our primary residence?
I have a home that's my primary residence - Say cost basis is 100k. I can sell it and pay no capital gains taxes as long as the profit is less than 500k (since I'm married).
But if I move to another house and make that my primary residence and rent this house then when I sell I will have to pay capital gain taxes if I'm gone more than 3 years (I believe).
Question is does the cost basis stay at 100k? Or does it change to what ever the value is when we decide to turn it into a rental and no longer our primary residence?
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