February 11, 2021 5:51 PM
last updated February 11, 2021 5:51 PM
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?
February 11, 2021 5:58 PM
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.