Tax on capital gain on SFH/ WA

[Tiffani T.]

Hi BP,

So here is the scenario: If one bought a SFH in 2012 for $190, now worth about $500. Selling this piece for $490-500. Is he/she responsible for the capital gain? Any input would be great. Thanks everyone

TM

[Jake DeAtley]

hi @Tiffani T., I am not a CPA, however it is my understanding that you have to live in the home in at least 2 of the last 5 years since owning it. Thus, any profits you gain from the sale of this house would be subject to capital gains. The only way I am aware to really avoid this is to use the 1031 exchange, or move into the property for a couple of years :) 
There are other strategies to mitigate or minimize tax impact if you owned it outright and did something creative like a lease to own or owner financing. Happy to be of service in any way I can as well!