It's a basic principle that you don't have to pay capital gains taxes on your principal residence.
Sorry, I couldn't resist.
This is one of those occasions where you may want to bring in an accountant. If you've saved any capital losses, this might be the time to use 'em up.
If you have investments in a loss situation, maybe crystallize them - but only if it makes sense from an investment perspective. Don't let the tax tail wag the investment dog.
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