Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 11 years ago, 10/24/2013

User Stats

189
Posts
30
Votes
Shane Johnson
  • Hudson, WI
30
Votes |
189
Posts

Capital Gains Exclusion: 2 year between primary sales?

Shane Johnson
  • Hudson, WI
Posted

I owned two homes until recently. I bought the first 4 years ago, sold 3 weeks ago. I bought the second 15 months ago. By selling the first house only 3 weeks ago, did I just reset the clock by 15 months until I can claim the cap gains exclusion on my current home? Or am I reading this wrong?

Maximum Exclusion

You can exclude up to $250,000 of the gain (other than gain allocated to periods of non-qualified use) on the sale of your main home if all of the following are true.

  • You meet the ownership test.
  • You meet the use test.
  • During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home.



So, my thoughts now are, If I find a great property, rent my current house out,(1 year min?) in order to qualify it for a 1031? Or else I would have to wait the 2 years to avoid the cap gains, and hope the market is as strong as it is now...

Thoughts or opinions on that?






Loading replies...