if i sell my house and move into my caravan

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while continuing to rent out my second house will my second home be considered my residential home for capital gains tax purposes


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Link to Publication 523, Selling your home

“To exclude gain under the rules in this publication, you in most cases must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale.”

If your question is, will you have capital gains on the house you currently rent (the one you are calling your “second house”) when you sell it, then you will have to consider whether you will “have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale.”

If your question is, will you have capital gains on the house you currently live in and are selling, then you will have to consider whether you will “have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale.”

As you can see from the length of Publication 523, capital gains can be a tricky subject. The information in this answer is not to be taken as tax advice. You should contact your CPA or tax advisor if you are unsure whether you owe capital gains tax or how much you might owe.

Answered over 1 year ago
Harlan Cooper
679 3

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