Capital Gains Tax

brlepage
brlepage Member Posts: 1 Newcomer
edited April 9 in Situation & Life Changes

I co-own a house with my ex-wife that I moved out of 6 years ago. My ex is now going to buy me out. I have been living in a rental, but will be using my portion to buy a new house. Since the current house is not my primary home, is there any way to avoid capital gains tax?

Answers

  • DaveT
    DaveT Member Posts: 73
    https://community.freetaxusa.com/discussion/2457/capital-gains-tax

    To qualify for the capital gains exclusion, you would have to have owned and lived in the home for at least 2 of the last 5 years. Also, the exclusion only applies if the home is being sold. Not sure how it works if your ex is simply buying out your ownership portion but not actually selling the home. For your situation, you should probably seek the advice of a CPA or tax attorney.

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