tax question

[rgizzie]

Selling my house to purchase a live aboard sailboat. Is buying a boat to live on, with the profit you made on your house, considered non taxible , just like if you put it into another home? Thanks in advance

[Dave_S]

In Australia there is no tax on profit on you principal place of residence no matter what you spend your money on provided you have lived there for 1 year or more.

Maybe tell us what country you are in.

[rgizzie]

U.S. sorry. Forgot this was a world wide forum

[captainstubbie]

That rule went away a long time ago, if you have lived in the house as a primary residence for 2 of the last 5 years you may make $250000 as a single person or $500000 as a couple tax free without ever purchasing another home. If you have ever used the property as a rental this does not apply.

[rgizzie]

OK thanks. I thought that was the case. Just making sure. Thanks.

[pcmm]

Originally Posted by rgizzie

Selling my house to purchase a live aboard sailboat. Is buying a boat to live on, with the profit you made on your house, considered non taxible , just like if you put it into another home? Thanks in advance

Capital gains on the sale of a primary residency is tax free. At least in Canada it is, and you didn't give us the context of where you're posting from. So we'll assume Canada for now!

[svspirited]

Originally Posted by rgizzie

OK thanks. I thought that was the case. Just making sure. Thanks.

Check with your accountant on that one. So long as it was your primary residence for 2 out of the last 5 years, regardless of whether or not it was used at some point for rental income, and assuming you paid the appropriate taxes on that rental income, you get tax free capital gains on the first $250,000 if you are single or $500,000 if married. That said, a number of tax rules have changed for 2018 so all of this may no longer be the case.

[captainstubbie]

I agree...2018 may be a whole different playing field...

[Chuck34]

Originally Posted by pcmm

Capital gains on the sale of a primary residency is tax free. At least in Canada it is, and you didn't give us the context of where you're posting from. So we'll assume Canada for now!

pcmm....I noticed your location isn't listed either. Can we assume you are in Canada?