Carmel Valley, CA asked in Tax Law for California

Q: Capital Gains tax on living in new home 9 months or less.

We are almost finished building a home in the Monterey, CA area. My husband's job may force us to move out of the area within 6-9 months. If we make a gain on selling our home of $200k having only lived in it 6 months, with the tax exclusion for a move, how much in Capital Gains would we have to pay?

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1 Lawyer Answer
Eric Steven Day
Eric Steven Day
  • Tax Law Lawyer
  • Henderson, NV

A: You will still be able to take the exemption from gain on the sale of a personal residence under certain circumstances. It's called the 50 mile rule. If the location of the new job is 50 miles or further away you will be able to take the exclusion of the 2-year rule and the entire transaction would be tax free

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