Simply described, "nonqualified use" means any use other than as a principal residence after December 31, 2008. So, for example, use as a second home, vacation home, or rental is considered "nonqualified use" beginning in 2009 or later.
What is the difference between qualified and nonqualified use of home?
Qualified use is defined as any use of the property as a primary residence. Non-qualified use is defined as any use of the property other than as a primary residence, including use as a second home, a vacation property, a rental or investment property or use in a trade or business.
What is period of non-qualified use for Section 1250 gain?
The term "period of nonqualified use" means any period (other than the portion of any period preceding January 1, 2009) during which the property is not used as the principal residence of the taxpayer or the taxpayer's spouse or former spouse.
What is a non-qualified sale?
Non-Qualifying Sale means a sale made with the consent of Lender, which sale would otherwise meet the definition of a Qualifying Sale, except that the sale will result in a payment to the Lender of less than $*** (excluding any payment made pursuant to this Agreement).
What is the major advantage of a nonqualified plan?
Contributions to a nonqualified plan will lower your current income taxes (you must still pay Social Security and Medicare taxes).
What is the partial exclusion of gain on the sale of primary residence?
If you qualify, you don't have to pay any income tax on up to $250,000 of the gain from the sale of your principal residence if you're single, or up to $500,000 if you're married and file a joint return.