topic Capital gains tax in Investors & landlords

Capital gains tax

Joika1979 — Mon, 20 Jul 2020 14:53:52 GMT

Bought a house in April 2014 lived in it (primary residence) until April 2018. Rented it out from 2018 until December 2019. Sold it in January 2020.

Im April 2018 bought a new home and made it my primary residence until July 2020 when I sold it.

Which one or both came be excluded from capital gain tax or how could I work it out?

Re: Capital gains tax

Carl — Mon, 20 Jul 2020 15:17:05 GMT

You can only claim the exclusion on one primary residence every two years.

Since you sold the 2nd home within two years of selling the first home, only one of them can qualify for the exclusion. Which one doesn't matter. You'll have to work through both scenarios to see which one is better for you tax-wise.

But the bottom line is, you will pay taxes on any gains from one of the homes. Which one is up to you.

Re: Capital gains tax

Joika1979 — Mon, 20 Jul 2020 15:33:50 GMT

Thanks!