Because of this, the whole sale thought was regarded as money gains. Had the home been sold right after 3 a long time , ie soon after June 2018, then in this sort of circumstance the expense of acquisition would be offered to be a deduction and cash gains would reduce.  

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Just in case total cash gains aren't invested – the amount not invested is charged to tax as extensive-phrase capital gains.

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Case 2: Cost of The brand new residence obtained is a lot more than the funds gains computed about the sale of the first dwelling 

Let’s take into consideration two situations once the new house is sold in 3 yrs from your date of order or construction: