carololine <carolsinger[at]please.com> wrote:

- quote -

Was this one purchase (one deed), or two different
purchases with two deeds?

If only one, it could maybe be argued owner was occupying the
entire property as principal residence during the time he was
occupying one structure and leaving the other vacant.

Any opinions on this?

Steve

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- quote -

He does not owe any capital gains tax until he sells the
property. When he sells it, whether he owes capital gains tax
will depend on (1) whether he has a gain, and if so how much,
and (2) whether he owned it and lived in it for 2 of the 5
years preceding the sale.

Bob Sandler

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carololine wrote:

- quote -

Did he live in property B for 2 years? If he did, no cap gain
for up to 250K single/500K married.

The fact that the houses were semi-detached is irrevelent, I
believe. Many cities have semi or fully attached homes.

JOE

There two semi detached houses next door to each other which
one person buys.

We will call the properties A and B.

The buyer moves into property A but leaves property B empty.

He then demolished both A and B and constructs two new
detached properties on the same land.

He then builds property B first and moves into and lives in
property B.

When property A is completed, he then moves into property A.

IS HE LIABLE FOR CAPITAL GAINS TAX ON PROPERTY B.

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