rules for sale of primary residence

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  • irene
    Junior Member
    • Mar 2020
    • 1

    #1

    rules for sale of primary residence

    what are the rules for sale of a primary residence if it was owned for four years and lived in for 2 years
  • Dude
    Senior Member
    • Dec 2018
    • 360

    #2
    lived in for 2 of the last 5 years
    "Dude, you are correct" Rapid Robert

    Comment

    • RWG1950
      Senior Member
      • Nov 2017
      • 461

      #3
      Believe the section 121 exclusion rules require :
      1. the taxpayer used the dwelling as his/her principal residence for at least a two year period during the preceeding 5 year period
      2. no section 121 exclusion was used by the taxpayer during the prior two year tax period
      Qualifying sellers of section 121 property can exclude gains on the sale of $ 250,000 (for singles) and $500,000 (MFJ).

      Comment

      • TaxGuyBill
        Senior Member
        • Oct 2013
        • 2321

        #4
        Was it used as a Principal Residence AFTER the non-lived in period? Or did it start off as two (or more) years as a Principal Residence, then change to a non-Principal Residence?

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