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June 12, 2021
Question

Selling Original House - Impact on Taxes

  • June 12, 2021
  • 1 reply
  • 0 views

Hello,

 

(I live in Florida, but I am not sure if that impacts the rules for how the taxes here apply)

 

Near the end of October 2019, my fiancee and I purchased a home and prior to the end of 2019 claimed homestead on the new home. Prior to this, we both lived in a house I have owned shortly after the 2000s housing crash (and prior to this new home purchase, it had been my primary residence). 

 

I am looking at options now (June 2021) to sell my original house (which has increased in value considerably), and am not sure how things factor in with regards to what exemptions I can and cannot make in this situation as far as taxes go.

 

From the looks of it, if I go by 'official guidelines' for Capital Gains tax. I have spent over 24 months in the past 5 years with this house as my primary residence (even if it is no longer my primary residence), the amount of profit is not more than $250,000 (I am also still single as COVID delayed our wedding), and I have not sold a house with this exemption in the last two years.

 

Does this mean that when it comes to filing next year, should I be able to exclude any additional taxes from sale?

 

Thanks,

Steven

1 reply

Critter-3
June 12, 2021

Even if you get married this year you still can use the personal residence exclusion.