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CGassist.168
CGassist.168, Accountant
Category: Capital Gains and Losses
Satisfied Customers: 3444
Experience:  Tax Accountant
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We purchased our primary home 19 months ago and have to

Customer Question

We purchased our primary home 19 months ago and have to move. In 2014 on my taxes I was exempt from capital gain. Will I be exempt from capital gain if I list the sale on my taxes in 2015? Also does my capital gain include the amount I put down on the home or can I subtract that? It will be a gain of 100,000 if I subtract my down payment.
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  CGassist.168 replied 1 year ago.
Thank you for contacting us today. My name is ***** ***** my goal is to efficiently assist you with your Capital Gains matters.
Q1: Will I be exempt from capital gain if I list the sale on my taxes in 2015?
A1: As it has not been 24 months since you were excluded from paying capital gains tax, you will not be exempt from paying capital gains tax for tax year 2015. SEE BELOW:
How your sale qualifies. Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if the following is true:
You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.
You did not acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.
You did not claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.
REFERENCE SOURCE:
http://www.irs.gov/publications/p523/ar02.html#en_US_2014_publink1000200611
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Q2: Also does my capital gain include the amount I put down on the home or can I subtract that?
A2: Capital gains is incurred when a taxpayer sells a capital asset for more than original cost (cost basis, which includes cost of property, plus qualified improvements. The down payment is not relevant when determining how much capital gains tax must be paid.
Let me know If I can be of further assistance to you regarding this matter.
Customer: replied 1 year ago.
What is aggregated number of days mean? If I only lived in my home for 18 months does that make a difference in the amount I pay?
Expert:  CGassist.168 replied 1 year ago.

Q1: What is aggregated number of days mean?

A1: Total Number of days

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Q2: If I only lived in my home for 18 months does that make a difference in the amount I pay?

A2: No, as you have already been granted the exclusion, you are unable to take a portion of the exclusion based on the number of months in the property divided by 24.