L
Lon Gerondale
Guest
My retired grandparents purchased a secondary residence (cottage on lake) in the 1960's for approximately $10,000. The Wisconsin residence is now valued at approximately $240,000 (much more than their primary residence.) They can not keep up with the maintenance and would like to sell but feel like they will pay too much tax.
1) How can they minimize or eliminate paying capital gain tax?
2) Could they eliminate any capital gains by claiming it as a primary residence? If yes, how would they prove primary residence? What does the IRS look for as proof of primary residence?
Any suggestions of what they should do?
3)If they do have to pay tax. How much would they pay?
1) How can they minimize or eliminate paying capital gain tax?
2) Could they eliminate any capital gains by claiming it as a primary residence? If yes, how would they prove primary residence? What does the IRS look for as proof of primary residence?
Any suggestions of what they should do?
3)If they do have to pay tax. How much would they pay?