Newly Married, Capital Gains Tax Exemption Question

[Danette Tranter]

Hi everyone,

My husband and I got married last November, he used a capital gains exemption when filing taxes this year after selling his townhome in November. We are about to sell my home in Raleigh, but I've read you can only claim this exemption every two years. I will have owned this townhome two years in September, and we would like to sell it soon. We are purchasing a SFH soon.

Am I correct that I can't claim the tax exemption next year? If so, it seems like it might not be worth waiting until September to sell it. We could put a renter in and sell later, but we are also going to be making a nice profit regardless with my slow live-in flip/newly finished basement. It would be nice to put the money into something else.

Any other solutions?

Thanks!

[Jaron Walling]

You are correct that it can only used once every 2 years. Have you considered a 1031 exchange? @Dave Foster is the man when it comes to exchange questions! Maybe that can benefit you. 

Properties are selling in hours in most markets. It's a sellers market so take advantage of it. Renting for a year and dealing with tenants is not wise if you ask me.