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Following a divorce, a taxpayer extinguished the co-ownership of her primary residence, receiving payment on a deferred basis. A query is made regarding the temporal imputation of the gain and the deadlines for the reinvestment exemption.
Question posed: Temporal imputation of the capital gain or loss generated, application of the exemption for reinvestment in the primary residence, and the deadline for its execution.
In operations with deferred payment, the taxpayer may opt to impute income proportionally as the collections become due. Reinvestment must be carried out within a period not exceeding two years from the transfer, from date to date. It is not considered out of time if the installment amounts are allocated to the new residence within the tax period in which they are received.
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