how many month we have to live in 15 years old house i can save capital gain that is my principal residence

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Im getting divorced and im paying the mortgage on a rented property which has some tenants in it. my ex husband has said he will transfer it to me as ive been looking after things and paying the mortgage for teh lst few years and i owe very little on the mortgage now. however the buy-to-let mortge will not let it transfer to my name only as the buy to let rules have changed and im not earning enough to actually take it over in their eyes - althought the rent more then adequatley pays the mortgage and repairs and insurance and also do the tax return - but im just below the level to pay tax as i m still only working part-time. my morgage advisor has asked me to look at capital gains tax if its transferred to solely my name only am i liable and also how can i get out of paying capitla gains tax when i die and trnasfer it to my duagher and son ? we ddi live in the property as our main home when we first bought it and had to move due to work. im also wondering i a solicitor can draw up a papaer to say the property will be transferred to me once ive paid off the mortgage and my ex is happy to have nothing to do with the house so long as i can pay it - the mortgage is only 147 a month

You are getting some odd advice. A buy to let mortgage will only look at the income stream from the property. If you have over 30% equity and enough rent in 10 months a year to carry the mortgage you should be fine. Having said that, if your husband is ok remaining on the mortgage, this will work out cheaper than a refinance and yes, the divorce document can state that the property became yours alone at the time of the divorce but that his name remained on the deed until the mortgage was paid off. There is no capital gains tax on assets divided up in a divorce. Just remember that your cgt liability when you do eventually sell will be on the original purchase so make it your home for a couple of years before you sell. Transferring it to your children is going to be more complex. You can gift it to them once the mortgage is paid off but you will have to hand it off entirely and give them the income stream. If you retain an interest in the property (say by living there or by receiving rent from your tenants) you will be considered to have made a 'gift with reservations'. Google this and you will see that this is a nightmare scenario whereby the house is clawed back into your estate on death but is also liable for capital gains tax

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My wife and i purchased a house in 2003 whilst working as a housemaster (and wife) in a boarding school. it has been necessary to live in school accomodation in order to discharge our duties, and therefore we rented out our house. it has gained about £50,000 in value over the past few years,and although we have never lived in the house we would now like to sell it. i believe that there are special dispensations relating to capital gains tax if you have to live in accomodation in order to do your job(i.e. a vicar for example) and therefore are unable to live in your own house. under these circumstances the property is treated as your principle residence. is this true? and, 1. does this apply to housemasters? 2.are we able to claim the house as our principle private residence even if we have not lived in it? 3. if not then how long would i have to live in it to avoid paying capital gains tax? any insights into yhis problem would be very gratefully received. thank you.

If you have been living in job related accommodation, then the sale of the property would not attract CGT, even if you never lived in it. You simply would not declare the sale. Your employer would have to be ready to confirm that you were required to live on school premises should HMRC ever raise an enquiry into this aspect of your tax return.

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A disabled mother has transferred the title to her unit to her child in return for care and rent free residence, instead of making the child beneficiary of her will. she believed it was better to have someone to administer the property and sell it should the funds be required for long time care. when she died the unit was immediately sold. should not there be a capital gains tax exemption in australia? the child was de facto beneficiary and would not pay cgt on inheritance sold immediately. additionally the mother lived in a foreign country and the title to the unit had restricted ownership rights as the mother had the contract to reside in the unit to the end of her life.

No, the mother should have retained ownership and given daughter enduring power of attorney to administer affairs. Unless the daughter can claim principal residence for the house, the daughter is up for CGT upon sale. Also the transfer of ownership would have been assessable for stamp duty. The mother (and daughter) should have sought professional tax advice prior to doing this. The law is the law. Your last paragraph implies that the mother only had "life tenancy" ie the dads will said beneficiary is the daughter but mum can live there until she dies. These are always nasty in terms of CGT implications as the cost base will be the value as at dads death, and the daughters CGT bill will be based on that value and the value at sale.

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I purchased a property in 2001 and have been living there since. if i move to another house in someone else's name (move in with them) and rent out my own property, would i have to pay capital gains when i sell my property and how much would it be? i know it is based on the profit of selling price and buying but i can i avoid it since i lived in the property for so long?

There is an exemption which allows you to rent out your main residence for up to 6 years after you move out before any tax is payable on the capital gain (if the property was sold). In the mean time, you can't apply the main residence exemption to another property that you own during that period.

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To avoid cgt for another property you need to live in the property before you sell but for how long? and are there any other ways to reduce or not pay it. thanks!

There is no fixed minimum time before you are entitled to Principal Private Residence relief. You merely have to establish that the property is actually your main residence. HMRC will look at all the facts but there are a number of things you can do to help establish residence. First, tell HMRC! Many overlook this but you should always notify them of your change of address. Make sure you are on the electoral roll at the new address. Make sure as much post as possible is sent there, especially financial documents such as bank statements. Let out your other house so that it is not available to live in. You get the idea. Do as much as possible to prove that you have changed address. Then you will be entitled to PPR for the last three years of ownership.

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How long do you need to live in a property that has been rented out to avoid paying capital gains tax?

depends how long you been renting it. three years if its been ages

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I own a property on a buy-to-let mortgage that i rent out (its my only property and i rent where i currently live). i am thinking of selling it and am happy to move into it if it means i can avoid paying capital gains tax. how long will i need to live in it for this to be avoided? what evidence do i need to have to prove it was my main residence?

You did not say where you are located. In the US it is 2 of the last 5 years. But you still have to pay capital gains on anything over 250k single, 500k married.

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I will try not to waffle, my partner and i want to sell our three bedroom house that we currently live in because my two elder children are coming to live with us and the house we are in is no longer big enough. we have put our house on the market but the kids will probably be moving in with us before the property sells, so we will move into a rental property. my question is, will we have to pay capital gains tax if our house sells and we are not living in it? i know that at the moment we will not have to pay capital gains tax if it sells while we are living in it as our main place of residence, will this change if we rent while it is on the market? thank you.

If you are currently entitled to the main residence exemption for the entire period you have owned your home, and you do not purchase another dwelling (and treat it as your main residence) before your current one sells, and you rent the property out while waiting for it to sell, then you are still entitled to the exemption for up to 6 years of income producing. I would advise you to get some professional Taxation Advice in regards to what you can claim as deductions on the property while renting it out, and the consequences of some of those deductions. eg: Capital works, Depreciation... Here is a link to an ATO CGT calculator which you can use to calculate any assessable gain. http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=CGT_and_real_property.XR4&go=ok And info for treating a dwelling as your main residence after moving out. http://www.ato.gov.au/individuals/content.asp?doc=/content/36887.htm

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I currently live in the income property in california. my roommate and i pay just enough rent to cover my parents property taxes. the basis is $120,000 owned (from the 1st house they owned), they had a 1031 exchange and purchased this one 3 years ago for $800,000, the house is now worth $840,000. we want to avoid paying estate taxes because their net worth is about 3.5 million including this property. my parents are elderly and do not expect to live long. we already have a family trust that gives the property to my brother and i when they die, but we are not completely covered by the estate tax exemption for 2008 and 2011, etc. i have a brother who is willing to be a middle man in case we need to transfer more than the $24,000 gift exemption from both my parents. what is the cheapest way my parents can give me the property while paying the least amount of taxes (gift tax, estate tax, capital gains tax, etc) and fees (estate planner, estate lawyer, appraiser, real estate agent, etc) i make $30,000 per year which is very little if you live in the san francisco area. the house is worth $840,000 which is average for a house in the bay area. i am not rich and do not have a retirement because my job is not great.

See what tax bracket you are in and have them set up a trust in which they gift you a certain amount of the assets each year up to the top of your bracket. One of my sisters is doing this. She is giving 2.5% of the assets each year this is based on her being below the inheritance tax limit before her death. You need to see a very good tax lawyer/accountant. Pray that you get this set up and sadly that your parents pass before the Democrats get in office because they plan on repealing the inheritance tax limit and you could get socked with a 60% inheritance tax. I know so many people who are farmers and ranchers where I am from. They own property that has been in their families for generations. They are by no means rich just middle class farmers that own several hundred acres. The problem is that the land value has went up so much that their land is now worth 10,000 an acre or more. When they pass their children are being forced to sell the land because they can't pay the inheritance tax. They are being forced to giving up their way of life, this is happening to an entire generation of small farmers and ranchers.

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Want to keep the money in the bank so that if property drops i can get a better deal but dont want to pay capital gains tax, is there a time limit as i have lived in this property for over 15 years

In the UK your private residence is not subject to Capital Gains tax unless you have used a portion of the house for business purposes and claimed "use of home" relief...............