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Answered 2008-10-31 14:36:01
If you buy a house and don't live in it and work on it for 1 or 2 years you may or may not have a tax liability when you sell it. The rule is that you must live in the home for 24 out of the past 60 months in order to sell the home and not incur a tax liability. Furthermore, if you are single you may realize a non-taxable gain up to $250,000. If you are married then your non-taxable gain extends to $500,000. If you live in the house 24 months during the course of a 5 year period of time and rent the house for the remainder of time then you will reap the tax benefits of depreciation and any other writeoffs associated with the rental.
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