Sell and Buy residence five days before two years
My husband and I purchased our condo in Florida on July 31, 2000. It has been our principal residence. We have signed a contract to close on the purchase of a new home on July 31, 2002, but are closing on the sale of the condo purchased in 2000 on July 26, 2002, five days before full two years. Our profit from the sale of the condo will be $22,000. We plan on putting the full $22,000. into the purchase of the new home, which is also in Florida and will be our principal residence. Will we have to pay any taxes on the profit of the sale of the condo because of this five days shortage?
1 Answer from Attorneys
Re: Sell and Buy residence five days before two years
Unless the home sale for less than two years meets certain exclusions (i.e. sold due to health- going into nursing home), you will be subjected to capital gains tax since ownership of primary residence is less than two years. The old gain rollover rule is no longer applicable. Better to postpone the sale date.
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