FALSE FACTS FRIDAY Issue 9: “If I Sell My Home, I Have to Reinvest in a More Expensive Home to Avoid Taxes”
Is The Capital Gains Taxes Law Still In Effect?
How To Avoid The Capital Gains Tax?
- First, the exclusion only applies to the primary residence and only if the individual/couple resided there for at least two years.
- Second, if the taxpayer took deductions on the home for a home office or otherwise, the full amount of the deductions taken over the course of the ownership reduces the exemption.
Joan Reed Wilson Esq. – Managing Partner
Practices in the areas of estate planning, elder law, Medicaid planning, conservatorships, probate and trust administration, and real estate. Admitted to practice in the States of Connecticut and California, she is the Vice President of the CT Chapter of the National Academy of Elder Law Attorneys (NAELA), an active member of the Elder Law Section of the Connecticut Bar Association, accredited with the PLAN of CT for Pooled Trusts, with the Veteran’s Administration to assist clients with obtaining Aid & Attendance benefits for long-term care needs and with the Agency on Aging’s CareLink Network.