Tax office narrows the capital-gains exemption on selling your home
In binding rulings, the tax authority has tightened who qualifies for the IRS capital-gains exemption when selling a main home. Working from that home in the 12 months before the sale — even partly — can disqualify it, in a case involving a retired lawyer still working from home. Separately, buying land to build a house for the rental market does not qualify either.
Why it matters for your move
Two very ordinary situations — a home office and building to rent — now cost the exemption. If you plan to sell, the tax treatment depends on how the property was used in the final year, not only on what it is called.
This is Re-locant.com’s own brief, written to explain what the update means for people moving to or living in Portugal. For the full original report, see the source below.