Long Term Cap Gains

Is it 2 years that you need to hold a property to be taxed at long term or 1?


This question will be best answered by your accountant.

You must hold the property for one year and one day in order for the gain to be taxed as a capital gain (on an investment property). If you are talking about your own home, then you can exclude a capital gain of up to 250,000 as a single filer or 500000 as a married filer. “(a) Exclusion
Gross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more.” http://www.law.cornell.edu/uscode/text/26/121

Hope that helps.

The exclusion from capital gains with the cap at $500,000 ($250,000 for individuals) remains in effect (subject to limitations) because of the H.R. 8, the American Taxpayer Relief Act of 2012 (otherwise known as the mortgage forgiveness act). We are not sure if the Feds will extend this past 2013 but for right now it remains in effect.