I was wondering if anyone has run into this issue.
In order to take the $250,000 gain exclusion, taxpayer must have lived in the home for 2 years and owned the home for 2 years out of 5 years.
Example - Taxpayer purchases house in January 2008 and sells the house in March 2012, so that the taxpayer will satisfy both 2 year ownership and 2 years residence in the home. In January 2013, taxpayer buys a new home. If the taxpayer sells the property in exactly two years (in January 2015), can the taxpayer take the gain exclusion again or does the 5 year window prevent this because of the prior sale ?
In effect, can a taxpayer buy and sell their primary residence every two years and qualify for the gain exclusion ?
Thank you
In order to take the $250,000 gain exclusion, taxpayer must have lived in the home for 2 years and owned the home for 2 years out of 5 years.
Example - Taxpayer purchases house in January 2008 and sells the house in March 2012, so that the taxpayer will satisfy both 2 year ownership and 2 years residence in the home. In January 2013, taxpayer buys a new home. If the taxpayer sells the property in exactly two years (in January 2015), can the taxpayer take the gain exclusion again or does the 5 year window prevent this because of the prior sale ?
In effect, can a taxpayer buy and sell their primary residence every two years and qualify for the gain exclusion ?
Thank you
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