Capital Gains On Sale
Due to my current situation, I am selling two properties that could be exempt from CG within the same year. My question is: Can I choose which one I exempt? Or does the first one sold, become the exempt one automatically.
The first one, I would pay CG of about 30K.
The second one, I would pay CG of about 55K.
I am hoping I can exempt the second one I sell.
Thanks,
Marc
First we need to know why they would be exempt. Primary residence exclusion, like-kind exchange, casualty loss?
You are only allowed one capital gains exclusion in a 24 month period. It is your option to pick the sale for which the exclusion will apply. Select the sale with the largest profit to protect, pay the capital gains taxes on the lower sale profit amount.