Mya70 wrote:

- quote -

I don't see any problem with it, but I'm not sure where to
look for the answer.

--
This account is subject to a persistent MS Blaster and SWEN attack.
I think I've got the problem resolved, but, if you E-mail me
and it bounces, a second try might work.
However, please reply in newsgroup.

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"Mya70" <mya70[at]aol.com> wrote

- quote -

You buy half a duplex, your friend buys half a duplex. Two
years later (or more if you like) you sell your half of the
duplex, and your friend sells their half of the duplex. Any
gain on the sale(s) would be tax free (up to $250,000)
assuming several things happen. You must use the home (your
half) as your residence for the two year period, and the tax
laws must no change in the next two years.

--
Paul A. Thomas, CPA
taxman at negia.net

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mya70[at]aol.com (Mya70) writes:

- quote -

Yes!!! Each of you would be eligible for up to a $250,000
exclusion.

You'll find the answers in Publication 523 "Selling Your Home":

http://www.irs.gov/formspubs/page/0,,id=11897,00.html

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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My friend and I were thinking about buying a duplex together
and then owner-occupying each side of the place. Since this
would be our principal residence, would we be eligible for
the capital gains exclusion if we sold for a profit after
two years?

Any thoughts on the matter or suggestions of where to look
for the answer would be greatly appreciated.

Thank you,

Matthew

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