My husband and I are thinking of tearing down the house we have lived in for 16 years and building a new house to increase our retirement nest egg. We would sell it as soon as it is done. Could we still get the capital gains tax exemption even though it would be a new house on the same land?
That is a good question A Cpa would know the answer.. but worse case i guess you just need to live there 2 years
Great question! Let me know what you find out.
Thank you both for your replies. I guess we would have to weigh the capital gains tax against the very high property taxes we would have to pay for 2 years and the mortgage on the construction loan. I will seek the advice of a real estate tax advisor.