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Capital Gains Confusion

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L

lhp

Guest
I'm getting married next month. My fiance and I both own homes. We have put a contract on a new home together which will become our primary residence after the wedding.

We plan to sell both our individual homes. His will go on the market next week. I'm waiting until after April to sell my home because as of April it will have been my primary residence for 2 years, and I can therefore use the capital gains exemption to avoid paying capital gains on the profit from the sale.

My fiance does not stand to make any real profit from the sale of his home....after the realtor's fee he will probably break even give-or-take a thousand $.

I, on the other hand, stand to make a significant profit on the sale of my home.

Here's my concern....after we are married do we have to sell my home first in order to apply the capital gains exclusion to the profit on my property...or if we happen to sell his home first, can we elect NOT to take the capital gains exemption and save it for my propery?

I'm concerned that selling his home first will ruin our chances of avoiding capital gains on the profit from my home...which will be siginifcantly greater than profits(if any) from his home.

It is my understanding that once we are married we can only take the exemption once for two years. Is this true?

Thanks.
 



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