Okay, I was wondering if someone could clarify the capital gains tax law for me a bit more. From what I understand this tax applies to properties that have NOT been the homeowner's primary residency for 2 of the past 5 years. I am thinking of turning my current house, which in January will be exactly two years of ownership, into a rental property and possibly purchasing another property, live in one room and rent out the other rooms if I'm gutsy enough. However I want to have the option of selling it before two years if I plan on moving elsewhere. Is this a smart move considering the trend of rising interest rates? Or would it be better just to move into a cheap apartment while I'm renting out my current property? I'm single btw. I talked to a friend of mine and he says that your gain must be fairly substantial, from what I've read about $250K and $500K if your married for this to apply. I will be no where near the ball park of this area in terms of gain so does this mean CG will not apply to me? Although I've been a homeowner for a little less than two years I'm just learning about the real estate market (I know, great timing, huh? 
) Any help would be greatly appreciated!
) Any help would be greatly appreciated!
