Do we qualify for cap gains exclusion?

Ask NJMoneyHelp

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Q. We own a condo and have lived here for 10 years. We intend to move to a Continuing Care Retirement Community (CCRC) in Pennsylvania in December 2018. When we sell the condo, do we get a $500,000 exclusion on our New Jersey return?
— On the move

A. Good luck with your new home, and be sure to pay close attention to the language of the CCRC contract. It’s not always easy to get your money back if you decide to move.

New Jersey follows the federal rules when it comes to excluding the gain generated upon the sale of a principal residence, said Neil Becourtney, a certified public accountant and tax partner with CohnReznick in Eatontown.

“If you meet the federal rule – requiring two out of the preceding five years use and ownership – for the New Jersey residence, you will qualify for an exclusion of up to $500,000 of gain as a joint filer,” he said.

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