In principle, the capital gain realized on the sale of a principal residence is not taxable. But in the event of separation or divorce, specific rules apply.
Reselling your home can be expensive! Real estate capital gains are subject to income tax at the rate of 19% and 17.2% of social security contributions must be added.
A 2% surcharge is even provided for capital gains over 5,000 euros. It reaches 6% for a capital gain exceeding 260,000 euros. The bill can therefore quickly mount up, especially when you put your home up for sale shortly after purchasing it! Indeed, beyond six years of detention, we benefit from reductions.
Fortunately, some properties are exceptions. The gain recorded on the sale of the principal residence escapes this taxation, provided that it constitutes the habitual residence of the taxpayer at the time of the sale. A notion that can become complicated in the event of separation. It is not uncommon for one of the two spouses to leave the marital home without waiting for the divorce. In doing so, he establishes his main residence elsewhere. If the common property is sold, its share of the capital gain is in principle taxable.
Conditions to escape tax
However, it is possible to benefit from an exemption, under certain conditions. The first is that the property sold remained the principal residence of the ex-spouse until the sale.
Then, the sale must be the consequence of the separation and must take place in a reasonable time after this one. This deadline is assessed on a case-by-case basis, taking into account in particular the duration of the divorce procedure, the steps taken to sell, the functioning of the local real estate market and the characteristics of the property. A period of one year is considered by the tax authorities as a maximum duration in most cases.
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What if the property is under construction? Any capital gain will be taxable, unless you can prove that the property was intended to become your main residence and that you were tenants during the work.
Other cases of capital gains exemption
The sale of the main residence and outbuildings (garages, parking areas, courtyards, etc.) are therefore in principle exempt. This is also the case for the first sale of housing other than the main residence if the capital gain is used for the acquisition or construction of housing used as the main residence within a period of 24 months. In addition, the interested party must not have owned their main residence in the four years preceding the transfer.
Among other cases of exemption, there is the sale of a property whose price does not exceed 15,000 euros. Finally, property held for more than 30 years is no longer subject to income tax and social security contributions.