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

[Anonymous]

Anonymous wrote:

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.

No, you are missing the point. Read it again. Each sale was preceeded by at least 2+ primary home occupancy. The proceeds have been rolled into the purchases of the next home. See?

[Anonymous]

Anonymous wrote:

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?

Not if you meet the residency test.

Also, it's an EXCLUSION not an exemption.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

No, you are missing the point. Read it again. Each sale was preceeded by at least 2+ primary home occupancy. The proceeds have been rolled into the purchases of the next home. See?

Rolling proceeds into another home is completely irrelevant for purposes of this discussion. It has zero bearing on the Section 121 exclusion whatsoever.

Once upon a time before 1997 there was a tax law that allowed you to roll over a gain into a new home and avoid or defer capital gains taxes on a home sale but that hasn't been the law in 25 years.

[Anonymous]

Does using a home office deduction during the time of primary residence factor into it?

[Anonymous]

Is anything over 250 or 500 gained then taxed at cap gains rate? Haven't sold a house in over 20 years and expecting a large gain that'd we'd like to roll into another house - but sounds like we can't do that 1:1.

[Anonymous]

^^
We have this same question.
Can't you roll some money into a "like" investment or is that something that doesn't exist anymore?

[Anonymous]

Anonymous wrote:^^
We have this same question.
Can't you roll some money into a "like" investment or is that something that doesn't exist anymore?

A like-kind 1031 tax-deferred exchange is for investment properties, not for personal residences.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

No, you are missing the point. Read it again. Each sale was preceeded by at least 2+ primary home occupancy. The proceeds have been rolled into the purchases of the next home. See?

Rolling the proceeds into the next house hasn’t mattered since the Clinton administration. You could have gotten your proceeds in $20s and rolled around with them in your bed instead.