In this situation, there is no tax to be paid.
The reason is simply because there is NO GAIN….. Capital gains tax is only paid if there is a capital gain.
If you pay $220k for a property, and sell it for $220k, the net to seller is ZERO. The amount / source of money paid down is irrelevant in determining capital gains tax liability.
While there is no exemption of capital gains tax for a property that is not your primary residence (the $250k / $500k exemptions), in this example, since there was no gain, there was no tax, and therefore no need for any exemption.
Here is an example where capital gains tax would be owed: You buy a property for $220k, and sell it for $240k… The net to seller is $20k, therefore there is a capital gains tax liability, ONLY ON THE GAIN, in this example $20k. If the property was your personal residence, the tax liability is exempted, and if the property is not a personal residence, the tax would need to be paid.
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