I purchased a home in 1997 for $73,800 as my primary residence. I began renting the property in 2002 and at that was worth $165,000. If I was to sell the property today, which number would be used to calculate my capital gains tax?
by 
Anonymous
ANSWERS: 3
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When I sold my home they used the difference between purchase price and sale price to calculate the gain. Improvements and repairs made during this time will help to reduce this difference. I suggest you contact a tax accountant. They may be able to save you thousands of dollars.
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As I understand this exemption it applies to your primary residence at the time of sale and you must purchase another primary residence. If your are downsizing to a property that costs less than the selling price of the first property you could have a capital gain based on the original purchase price. You should consult an accountant to maximize your benifit as these tax laws are always changing.
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You should probably talk to your accountant or insurance person about this.
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