How many times can you use $500K capital gains exemption on a primary residence?

[Anonymous]

Is the $500k capital gains exemption a lifetime, cumulative exemption?

So if I sound several primary homes, can I deduct $500K from each sale or is it $500K for all homes. For example:

1. House #1 sold, capital gains $200K, rolled into next house - used exemption $200K
2. House #2 sold, capital gains $300K, rolled into next house - used exemption $300K
3. House #3 capital gains $500K - have we exhausted the tax exemption? or can we exempt another $500k from capital gains tax?

That would mean that we had a total of $1million in capital gains from the sale of three homes (all with 2 years+ primary residence). Can we use it again on the third sale? or is $500K the limit?

[Anonymous]

How condo you have thee primary residences that you lived in for 2 years each in the past two years?

[Anonymous]

To answer your question, you can only take it once every two years.

[Anonymous]

Anonymous wrote:To answer your question, you can only take it once every two years.

Bingo. Other than that there are no life time limits lol

[Anonymous]

Anonymous wrote:How condo you have thee primary residences that you lived in for 2 years each in the past two years?

The homes were not all primary residences at the same time. I know that you can use the exemption every two years, but when you file your taxes to you have to report that you used the exemption multiple times before, so it would be like a 'claw back' on the sale of the current home? An CPA's on DCUM?

[Anonymous]

Anonymous wrote:Is the $500k capital gains exemption a lifetime, cumulative exemption?

So if I sound several primary homes, can I deduct $500K from each sale or is it $500K for all homes. For example:

1. House #1 sold, capital gains $200K, rolled into next house - used exemption $200K
2. House #2 sold, capital gains $300K, rolled into next house - used exemption $300K
3. House #3 capital gains $500K - have we exhausted the tax exemption? or can we exempt another $500k from capital gains tax?

That would mean that we had a total of $1million in capital gains from the sale of three homes (all with 2 years+ primary residence). Can we use it again on the third sale? or is $500K the limit?

No limit, with the 2 year minimum requirement

[Anonymous]

Anonymous wrote:

Anonymous wrote:Is the $500k capital gains exemption a lifetime, cumulative exemption?

So if I sound several primary homes, can I deduct $500K from each sale or is it $500K for all homes. For example:

1. House #1 sold, capital gains $200K, rolled into next house - used exemption $200K
2. House #2 sold, capital gains $300K, rolled into next house - used exemption $300K
3. House #3 capital gains $500K - have we exhausted the tax exemption? or can we exempt another $500k from capital gains tax?

That would mean that we had a total of $1million in capital gains from the sale of three homes (all with 2 years+ primary residence). Can we use it again on the third sale? or is $500K the limit?

No limit, with the 2 year minimum requirement

So when you file taxes after the sale of the 3rd home, there are no questions about whether or not you rolled previous tax free capital gains into the purchase of the third home?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is the $500k capital gains exemption a lifetime, cumulative exemption?

So if I sound several primary homes, can I deduct $500K from each sale or is it $500K for all homes. For example:

1. House #1 sold, capital gains $200K, rolled into next house - used exemption $200K
2. House #2 sold, capital gains $300K, rolled into next house - used exemption $300K
3. House #3 capital gains $500K - have we exhausted the tax exemption? or can we exempt another $500k from capital gains tax?

That would mean that we had a total of $1million in capital gains from the sale of three homes (all with 2 years+ primary residence). Can we use it again on the third sale? or is $500K the limit?

No limit, with the 2 year minimum requirement

So when you file taxes after the sale of the 3rd home, there are no questions about whether or not you rolled previous tax free capital gains into the purchase of the third home?

Yup, and for that home make sure to keep track of every receipt to help bring up your basis.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is the $500k capital gains exemption a lifetime, cumulative exemption?

So if I sound several primary homes, can I deduct $500K from each sale or is it $500K for all homes. For example:

1. House #1 sold, capital gains $200K, rolled into next house - used exemption $200K
2. House #2 sold, capital gains $300K, rolled into next house - used exemption $300K
3. House #3 capital gains $500K - have we exhausted the tax exemption? or can we exempt another $500k from capital gains tax?

That would mean that we had a total of $1million in capital gains from the sale of three homes (all with 2 years+ primary residence). Can we use it again on the third sale? or is $500K the limit?

No limit, with the 2 year minimum requirement

So when you file taxes after the sale of the 3rd home, there are no questions about whether or not you rolled previous tax free capital gains into the purchase of the third home?

You are missing the point. You can take up to $500k 1 time in two years. Not $200k twice in two years. If you use $50k once, too bad. You lose the rest of the $450k until two more years have passed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How condo you have thee primary residences that you lived in for 2 years each in the past two years?

The homes were not all primary residences at the same time. I know that you can use the exemption every two years, but when you file your taxes to you have to report that you used the exemption multiple times before, so it would be like a 'claw back' on the sale of the current home? An CPA's on DCUM?

No, the only clawback would be any depreciation recapture if you used the property as a rental.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is the $500k capital gains exemption a lifetime, cumulative exemption?

So if I sound several primary homes, can I deduct $500K from each sale or is it $500K for all homes. For example:

1. House #1 sold, capital gains $200K, rolled into next house - used exemption $200K
2. House #2 sold, capital gains $300K, rolled into next house - used exemption $300K
3. House #3 capital gains $500K - have we exhausted the tax exemption? or can we exempt another $500k from capital gains tax?

That would mean that we had a total of $1million in capital gains from the sale of three homes (all with 2 years+ primary residence). Can we use it again on the third sale? or is $500K the limit?

No limit, with the 2 year minimum requirement

So when you file taxes after the sale of the 3rd home, there are no questions about whether or not you rolled previous tax free capital gains into the purchase of the third home?

You aren’t required to roll the gains into the new home anymore. That was done away with a long time ago.

[Anonymous]

I'm glad to hear this is still a thing - I thought it was taken away during the last tax reform a couple years back.

[Anonymous]

Anonymous wrote:I'm glad to hear this is still a thing - I thought it was taken away during the last tax reform a couple years back.

It probably should have been. It's terrible tax policy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm glad to hear this is still a thing - I thought it was taken away during the last tax reform a couple years back.

It probably should have been. It's terrible tax policy.

Why so, boo?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How condo you have thee primary residences that you lived in for 2 years each in the past two years?

The homes were not all primary residences at the same time. I know that you can use the exemption every two years, but when you file your taxes to you have to report that you used the exemption multiple times before, so it would be like a 'claw back' on the sale of the current home? An CPA's on DCUM?

No, the only clawback would be any depreciation recapture if you used the property as a rental.

So as long as there is no rental depreciation or home office deductions there is no 'claw back' on any of the capital gains excemption?