Q. My wife and I own a home in Passaic County and whose own is the beach of Ocean County. In Ocean County, the market value of the home is substantially higher than the average value. We are retired and the Passaic County home we're primary, but we are also retired. Are there any advantages with the transform of our primary residence into the most valuable property in Ocean County?
Homeowner Home-owners - Home owner.
If you decide to sell your home, the only clear financial advantage, and its a big one. If the property is sold in Ocean County, it would be nice to have the money.
The tax code allows the first $250,000 of gains 500,000 for a married couple - on the sale of your principal residence to be forgiven.
To benefit from this you would have to have maintained the home as your primary residence for 24 out of the last 60 months, said Bernie Kiely, a qualified financial planner and public accountant at KielY Capital Management in Morristown.
Kiely said that the 60-month period ends on the day you sell your house.
He said that you probably meet the twenty-four months rule for your Passaic County home. If you want to sell your Passaic County home, you're right to go.
But what happens if you want to sell your Ocean County home at least once?
"If you sell it now, all the gain would be subject to federal and New Jersey income taxes," said Kiely.
If you're planning to do that, I recommend you change your residence to Ocean County immediately, so you can start the 24-month clock. After residing in Ocean County for 24 months, the first 500,000,000 dollars of gain of your and your wifes Ocean City home would be tax free.
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