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emc011075, Tax adviser
Category: Finance
Satisfied Customers: 3179
Experience:  IRS licensed Enrolled Agent and tax instructor
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If I sell my primary residence after I have lived in it than

Customer Question

If I sell my primary residence after I have lived in it for less than two years, would I have to pay capital gain tax? If so can I reinvest that capital gain in my next primary residence within 3 years and not be liable for that original capital gain.
Submitted: 1 year ago.
Category: Finance
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

Not using the property as your primary residence for at least 2 out of 5 years prior the sale only means that you will not qualify for the 250K exclusion, unless you qualify for an exception (and partial exclusion). Depending on your sales price and your basis (purchase price, improvements, expenses of sale) you may or may not have capital gains. Unless you live in a hot real estate market, you will most likely not have huge capital gains.

You cannot avoid capital gains by reinvesting the proceeds into another primary residence any more.

Customer: replied 1 year ago.
I am living in the property but for less than 2 years. Want to sell it and put any gains into my next property. The expected sale price is less than $250k.
Expert:  emc011075 replied 1 year ago.

You cannot escape capital gains by reinvesting the proceeds into your new home any more. How much did you pay for the house and how much do you think will be your closing costs? Any major improvements you made to the property?

Expert:  emc011075 replied 1 year ago.

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?

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