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This exemption will likely be reversed when you promote this new assets inside three years of its invest in or construction OR if you purchase another household residence inside of two several years from the sale of the initial asset or construct a residential home apart from The brand new residence in just 3 many years on the sale of the original asset. Capital gains within the sale is going to be taxed as extended-expression money gains.
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The definition of funds asset beneath segment two(14) of your Cash flow Tax Act contains house of any kind movable or immovable, tangible or intangible held from the assessee for virtually any function.
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