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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=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?[/quote]
No limit, with the 2 year minimum requirement[/quote]

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?[/quote]

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

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