Am I liable to pay capital gains tax on my home if I move to a new residence and it takes me 6 months to sell the old one?
Home Sale Move: Capital Gains Tax Liability After 6 Months?
If you get a new home before selling your old one, you can actually treat both as your main residence or principal place of residence (PPOR) up to 6 months.
This applies under the following conditions:
- The old property must have been your main residence continuously for at least 3 months within the 12-month period prior to its sale.
- During any period in those 12 months when the old property was not your primary residence, it must not have been used to generate income (so property cannot be rented).
- The new property must become your primary residence.
This way, you can take your time moving without worrying about the capital gain tax.
Source – Moving to a new main residence
