| Once in a lifetime?…read on:
CLIENT QUESTION:
Hi. I have a question. Is the $250,000 capital gains exclusion a
once-in-a-lifetime thing, or can it be used twice? Our home in NY, our primary residence at the time, was sold in 2016. We became Florida residents and our home in Florida has been our home since then. What happens when we sell our Florida home? Thanks.
MY RESPONSE:
It used to be a once-in-a-lifetime exclusion but this was changed about 30 years ago. Now the rule is that you get a refill of your $250,000 (each) exclusion once you have owned and lived in the new house for 2 out of the
last 5 years. So if you bought the Florida home in 2016, you acquired two new exclusions in 2018. In theory, you could buy and sell a new house every two years as there is no limit to how many times you can use the exclusion. Sell away!
I hope this helps!
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For more information on the Capital Gains exclusion,
look through some past Listen to Lawrence Letters –
Click Right Here to Find Them!
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