capital gains tax

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bms1

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I currently live in the US and am moving home in january i currently have a house which i rent if i return home and live in this house for over a year as my primary residence will this eliminate the capital gains tax if i sell it.If anyone can answer this i would greatly appreciate it.
 
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bms1, unfortunately you can't eliminate your requirement to pay CGT on the length of time that you rented the property out. e.g. if you rented it for 5 years and now move in for 5 years, then your CGT at time of sale would be 50% of the profit.
 
A non expert opinion :I think theres different rates of capital gains tax in the states depending on your income or how long you held onto the property. u may want to investigate what you would have to pay if you sold it while you are tax resident in the states and paid tax there compared to when you return home.
 
Doesn't the tax relief act step in if you've lived there more than 2 years and owned for more than 5? Then there would be no CGT?
 
How long have you owned it?
How long did you live in it (and for what periods?)
How long did you rent it out?
Did you go abroad after living in it for the purpose of employment?
How long do you intend to live in it when you come back?

What is the overall profit?

Answer the above and I can give you an idea - but get progessional advice.
 
I have owned it for four years.I have never lived in it i have rented it for the past four years i am unsure as to how long i would live in it when i return home at least two years as i plan to build eventually and don't plan on buying a site until i return home.If there was no financial gain to be made by living in it i would probably just buy another house and live in it until i had built my own as i have good tenants who have have just renewed their lease.I paid 130000 for the house it is valued at the moment around 21000---215000.I put down 30000 down when i bought it have a twenty year mortgage which is still less than 700 a month so dont really want to sell just that if there was a saving to be made down the line from living in it i would do so rather than buying another house.Although this might not be a bad idea as prices are dropping.Sorry for such a long winded response.
 
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