Posted by chet on January 26, 2005 at 11:35:29:
I would make sure I met the 2/3 rule not 1.99/3.01.
Residential home sale, capital gains tax - Posted by Lawrence Sayre
Posted by Lawrence Sayre on January 25, 2005 at 16:54:39:
I live in N/E Ohio. A little over 3 years ago I moved to a new home. I let my son live in my old home at my expense while he was going to college.
I sold the old home and it just closed a few days ago. Do I have any long term capital gains tax liabilities on profits received as a result of this sale.
Thank you,
Lawrence Sayre
Re: Residential home sale, capital gains tax - Posted by chet
Posted by chet on January 25, 2005 at 17:03:58:
sounds like no is
Re: Residential home sale, capital gains tax - Posted by lsayre
Posted by lsayre on January 25, 2005 at 19:56:54:
I lived there for 17 years.
Re: Residential home sale, capital gains tax - Posted by chet
Posted by chet on January 25, 2005 at 23:43:51:
The I would say you lived there 2 of last 5, and have access to this exemption.
Re: Residential home sale, capital gains tax - Posted by Lsayre
Posted by Lsayre on January 26, 2005 at 04:28:56:
Just for clarification, I lived in the home for 17 years, and then for the past 3+ years I have not lived in it. Would I qualify for the exemption if I did not live in the home for a bit more than the past 3 years?
if you haven’t lived there for more than 3 years - Posted by David Krulac
Posted by David Krulac on January 26, 2005 at 18:16:36:
even if 3 years and one day you CANNOT meet the 2 years out of the last 5 years. Therfore you can’t have $500,000 (if married) tax free do not pass go do not collect $500,000.
However, the problem can be corrected by mvoing back into the house and accumulating enough time so that when you sell, on the day of settlement, you clearly meet the residency for 2 years of the last 5 years. The 17 years doesn’t mean anything, only 2 out of the last 5 years.