Avoiding Capital Gains Tax

[Tyler Wagner]

Hello!

I am a first time house hacker. I will be closing on my duplex soon with a fha loan. I will be renting out my current primary residence and moving into one of the units of the duplex while renting the other side as well. I am thinking about the idea of selling my current house later in the year and will own only the duplex.

I am curious if anyone has some insight into how the capital gains taxation would work since the house I might sell will no longer be my primary residence. Are there strategies to avoid this? Thanks!

[Michael Plaks]

@Tyler Wagner

My colleagues possibly made it sound more complicated than it is. Assuming that you lived in your current home for 2 years, you have 3 years after moving out to sell it, basically without capital gain taxes. Just don't move back in, as it will complicate things.