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Updated over 3 years ago,
Is the Capital Gain Taxes Regulation Rule the Same Across States?
I have recently bought my first property in Michigan. My plan is to live here, make some improvements, for the next two years or so until I finish my dissertation and graduate from PhD, then sell the place as I move to somewhere else after graduation.
I read this article from BP: "How to (Legally!) Avoid Capital Gains Taxes on Real Estate": https://www.biggerpockets.com/blog/capital-gains-tax?utm_source=Iterable&utm_medium=email&utm_campaign=Newsletter%20%7C%2005/13/21%20(Regular%20%2B%20Plus)
In there, it says:
"If you’ve lived in your home for at least two of the last five years, capital gains tax on the sale of your home is exempt up to $250,000 for single filers and $500,000 for married couples."
I suppose that this means I don't have to hold the home for more than five years, but only need to have it as my primary home for two years? I am wondering if this "two-year" applies to all States?
Thank you very much for your insight.