I have done some googling and have read that you do not owe tax on the first $250,000 of capital gains on your house if you have lived in it for 2 years. Is that information still correct? I am looking to sell my house that I have lived in for 16 years, but failed to keep proper records of improvements. I am hoping that it will not come back to bit me. My gain will be much much much smaller than $250,000 if in fact I even have a gain. The Rochester housing market has been dreadful for years.
Now that is not true for a cottage I just used in the summer because it was not my primary residence. Right? I did make money on that, but didn't improve it, so it doesn't much matter I guess.
Thanks much for your help.