Situation- brought a house 2 years ago and done a full reno on it, we are currently going thru the process of subdividing the backyard and getting plans done up to build.
We have found another deal that has a far greater profit that we would like to try get.
We are thinking about selling the property we have renovated and are happy with what agents indicate it will sell for. Since we are living in this property and it’s been over two years I believe this is exempt from the bright lines test?. My question is if we were to subdivide that back section and sell it at the same time would it then fall under the bright lines test or does it get exempt since it was our “main home” that we owned over 2 years?
If the section is taxable would it be worth selling un-subdivided but with all the paper work in place to complete the process?
We have found another deal that has a far greater profit that we would like to try get.
We are thinking about selling the property we have renovated and are happy with what agents indicate it will sell for. Since we are living in this property and it’s been over two years I believe this is exempt from the bright lines test?. My question is if we were to subdivide that back section and sell it at the same time would it then fall under the bright lines test or does it get exempt since it was our “main home” that we owned over 2 years?
If the section is taxable would it be worth selling un-subdivided but with all the paper work in place to complete the process?
Comment