Tax implications on sale of principal residence

[Dirk S.]

Hi

I own and lived in my principal residence for over 20 years and a significant capital gains.

1 If I sell my principal residence I pay no tax on the first $250k of capital gains (filing single), but if I have additionally short and long term capital losses carry over  from stock sales, can I apply either of these additionally to any remaining capital gains?

2 Lets say I can offset the entire capital gains from the sale with those 2 measures, how much will show up on my tax return as AGI or taxable income?

3  NYC based. Any local or state tax considerations?

4 Is it correct that I could even rent the place for maximum 3 years to still qualify for the 2 out of 5 rule

If there is any CPA out there that will answer those questions for an hourly rate I would be interested in that.

[Michael Plaks]

@Dirk S.

1 - Yes, and it does not matter short or long term

2 - $0 in this hypothetical scenario, except for your other income such as W2

3 - Exclusion of $250k - same as Federal. Offsetting capital gains with past carryforward losses - same as Federal. Other state issues may exist however.

4 - Yes, as long as you don't exceed 3 years even by one day and you don't move back.

Bonus - You have 3 years to find a spouse and double your exemption ;)