Should you use home sale value to get tax break?
A taxpayer can fund new house through a loan, and invest sales proceeds from the old house
One of the exemptions for long-term capital gains on sale of a residential house is available on purchase or construction of a new residential house within the specified period. This exemption is available to the extent of the capital gains on the sale of the old house, if the taxpayer purchases a new house within a period of one year before or two years after the date of sale of the old house, or constructs a new house within a period of three years after the date of sale of the old house.
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