Deductions for Sale of Second home
We recently sold our cabin, which was never rented out, or a primary residence. I came across an article about changes to capital gains after about 2008. I read that if you purchased before that date, the old method applies and you could use a percentage for your capital gains. We purchased our cabin in 1998 and sold in 2023. According to that formula the years prior to 2008 would be exempt, therefore a percentage of 10/25 would be an exemption amount on total capital gains. My question is this ONLY applicable to primary residence. IRS publications are somewhat unclear. Also, what are the criteria if you you sell a cabin because of health issues, do you need some certification from a doctor. Thank you for your help.
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