I’ve lived in my primary residence nearly 3 years and am planning on buying a new home next month (will be new primary residence) and moving in without first closing on my existing home (will be listed for sale soon).
After looking at the tax code, in addition to having lived in a primary home for 2 out of 5 years, it seems you can only have one primary residence to qualify for the capital gains exclusion so I’m wondering once I close on the new home, will I be taxed at the capital gains rate of 15% when going to sell my first home within a few months?
If so, what is the best way to avoid capital gains tax other than telling my lender to list the loan for the new home as an investment property or attempting to push the closing out to a later date and hoping I sell my first home before the closing date on the 2nd home?
What is the final determination of what a primary residence is (e.g. where your mail is delivered, loan type, where you physically live)?
