Real Estate Sales and Capital Gains: Business as Usual!
To take into account the unique situation of elderly individuals living in nursing homes or specialized facilities—who may be forced to sell their former primary residence to cover the cost of their care—the legislature has provided for a capital gains tax exemption that applies to properties that served as the seller’s primary residence and have not been occupied since then. This exemption is, however, subject to two conditions. First, the seller must not have been subject to the real estate wealth tax (IFI) in the penultimate year preceding the year of the sale, nor must their reference taxable income (RFR) exceed the limit set forth in Section II of Article 1417 of the General Tax Code. Second, the sale must take place within two years of enrollment in the institution. When asked about this matter, the Government clarified that there are currently no plans to amend these provisions.
