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May 19, 2018 4:40 am
Hi .. is cap gain exemption on principal residence valid for a new building too? Assuming someone owned the property for 10 years, lived in it for all that time, and then tear down to the old building to build a new house. how long (if at all) does someone need to live in new house to claim cap gain exemption?
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May 22, 2018 9:02 pm
Hi RA, if you tear-down your home and build a new one, then the principal residence exemption will not be applicable for the old home. This is because you never sold the old home and so there is no gain.