Do I qualify for capital gains exclusion?

I have 2 town home units, 9 & 10. I lived in #10 since 2006 and rented #9. I want to sell both and buy a new larger home using capital gains. I will have approximately $200,000 from #10 and $150,000 from #9 in capital gains. The new home will cost approximately $500,000. If I use these gains as down payment for a new home, do I qualify for capital gain exclusion under Taxpayer Relief Act of 1997?

Real Estate, Taxes
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August 2016
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You qualify for capital gains exclusion only on the unit which qualifies as your primary residence. To qualify, the unit has to have been your primary residence for at least 2 of the last five years. That leaves an interesting strategy. Sell unit 10, take the exclusion. Then move into unit 9 for 2 years, sell it, and all of the gain is tax free. Note, if you have been depreciating 9 on your taxes as a rental property, you will also likely have to recapture depreciation, which can be a substantial tax hit.  See a tax advisor, it is worth the money.  

August 2016