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This exemption is going to be reversed when you market this new house inside of 3 years of its obtain or design OR if you buy One more residential dwelling inside of two years of your sale of the first asset or construct a household dwelling besides the new residence in just three years on the sale of the first asset. Cash gains within the sale will probably be taxed as lengthy-time period capital gains.
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If the cost of the new asset purchased is bigger compared to the money gains, then it is clear that there'll be no cash gains as the complete money gains might be exempted. Having said that, if The brand new house is marketed in just three years, then expense of The brand new household is going to be computed as follows:
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