Age Exemption for Capital Gains Tax
If I am over age 65, sell my house, and do not use it to reinvest in real estate, will I have to pay capital gains tax on the profit? At what age am I exempt from taxes on the sale of my house?
Asked on 1/19/03, 12:50 am
1 Answer from Attorneys
Ronald Cappuccio
Ronald J. Cappuccio, J.D., LL.M.(Tax)
Re: Age Exemption for Capital Gains Tax
There is no age related exemption for capital gains. Nevertheless, as long as you have owned and lived in your house for the past 2 years, $250,000 of capital gains is excluded. If you are married, your spouse would also have an exclusion of $250,000.
For example, if you and your wife bought a house for $100,000 ten years ago, and this was your principal residence, and you sell it for $600,000 there would be no gain.
Answered on 1/19/03, 10:07 pm
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