You can sell your primary home every two years and pocket up to $500K in capital gains.
Using a Vacation Home for Recreation, Retirement…AND Investment!
(Paperback 2004) “
“The new second home can also be a long-term tax shelter for future
retirement. For
“The rental home could be converted to a principal residence after it has
been “aged”… Then the former rental property could later be sold after the
qualifying period of use as a principal residence (two years) and the
(capital gains) exclusion claimed for the sale.” (page 5) In other words,
you can convert your rental property to a principal residence for two years
then sell it as a primary residence, and claim a capital gains tax
exemption.
Click the link below to buy this book at Amazon for only about $11:
http://www.amazon.com/exec/obidos/ASIN/0071429700/br-20
The book also describes using 1031 exchanges to defer payment of capital
gains taxes.