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nnoonkester
New Member

Can I pay capital gains on home sale from last year (lived there 2years) and use the exclusion for a current sale (lived here 1 year)?

We purchased June 2017 and sold Feb 2020, we made 46k. We purchased a new home with that in feb 2020. We are now currently selling that home, set to close March 2021 making 132K. Can I pay capital gains on the 46k and use the exclusion for this home sale?
2 Replies
tagteam
Level 15

Can I pay capital gains on home sale from last year (lived there 2years) and use the exclusion for a current sale (lived here 1 year)?


@nnoonkester wrote:
Can I pay capital gains on the 46k and use the exclusion for this home sale?

Yes, you can.

 

Per Section 121(b)(3), the limitation is applicable to one sale every two years.

 

Thus, you can choose the sale to which you want to apply the exclusion.

nnoonkester
New Member

Can I pay capital gains on home sale from last year (lived there 2years) and use the exclusion for a current sale (lived here 1 year)?

Even tho we have only owned and lived in this home for 1 year? I read somewhere we needed to be here for at least two is that the case?

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