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A taxpayer purchased a home with a mortgage and inquired whether they could apply the reinvestment exemption when selling their former primary residence to repay the new loan. The DGT ruled that this is possible, provided that the statutory timeframes and primary residence requirements are met.
This ruling clarifies the flexibility regarding the timeframe for reinvestment, allowing taxpayers to offset capital gains tax by using proceeds from a primary residence sale to repay mortgages on a newly acquired home, even if the purchase preceded the sale.
The tax team reviews your specific situation.
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