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Updated over 4 years ago on . Most recent reply presented by

User Stats

165
Posts
46
Votes
Eric Thomson
  • Real Estate Broker
  • Conroe, TX
46
Votes |
165
Posts

Section 121 Capital Gains Exclusion When dividing Property

Eric Thomson
  • Real Estate Broker
  • Conroe, TX
Posted

Hello all!

I have a tax question regarding the Section 121 2 year capital gains exclusion for primary residence...

The property in question is originally 3 subdivision lots. Wanting to re-divide the property and sell off the additional lots after 2 years. Will this still fall under section 121? I’m reading elsewhere that regular income tax would apply, but unclear if that takes into account the property being a primary residence.

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