Capital Gains Exemption for military move

Forum|Forum|4 years ago
March 10, 2022
1 reply
0 views

Greetings,

I bought a house in Hawaii in Nov. of 2020. I just received my separation orders back to my home of record (Minnesota). If I sale my house before the two year mark which is Nov. 2022. Will I be exempt from paying Capital Gains Tax. The profit I expect to receive on my house can be from 125k-150k and I’m single.

Not A Product Question

ThomasM125

All or a portion of your gain will be excluded from tax.

You would get an exclusion of $250,000 if you lived in the house for two years, which is not true here. However, the exclusion amount would only be reduced by a fraction based on the amount of time you lived in the house over that two year period of time.

So, it seems you lived in the house for at least fifteen months so far, so fifteen divided by 24 moths would mean you can exclude 62% of the maximum exclusion of $250,000, leaving an exclusion of $155,000 or so. If your gain is less than that, you would not have to pay tax on it.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"