Excess capital gain real state

If I make over $500.000 in capital gains from a sale of a primary residency filling jointly with my spouse.

Can I invest the excess in a new property ? Will I pay capital gain taxes on the excess?
What happens in invest the gains in a two properties, a primary residence and a rental property? Will I have to pay taxes on the excess?

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1 Best answer

Level 15

Sep 25, 2023 3:19:08 AM

@fjpuentes1974 reinveting the profit does not avoid the capital gain - that rule went out the window in 1997.

you simply owe the capital gain on the part over $500,000

be sure to subtract home improvments that occured over time and your selling costs when determining the gain,

Level 15

Sep 24, 2023 9:41:42 PM

any gain over $500K on the sale of a residence where both spouses are entitled to the maximum home sale exclusion is taxable. Period. there is no longer any way to defer or avoid having the gain taxed.

Level 15

Sep 25, 2023 3:19:08 AM

@fjpuentes1974 reinveting the profit does not avoid the capital gain - that rule went out the window in 1997.

you simply owe the capital gain on the part over $500,000

be sure to subtract home improvments that occured over time and your selling costs when determining the gain,

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Excess capital gain real state