Capital Gains Tax on Primary Residence

[Justin Pace]

Hello Everyone,

I bought a house out in Huntsville, Alabama and moved in back in February of this last year. Our plan was to move out here, live in the house for 2 years, sell with the capital gains tax exemption and move back close to family.

We are now thinking about going back slightly earlier than expected. My question is, if we went back out to family and "vacationed" for a month or two before our 2 years was up, could we still qualify for this exemption?

Is there a certain amount of months we need to be here for it to be our primary residence?

Thanks,

Justin

[Brandon Rush]

Hey Justin,

That would probably work. I would avoid submitting changes of address forms until that two months is up to avoid it being documented that you did move. You could just set up temporary mail forwarding to your new address. Also, I would avoid renting out your current residence until you have satisfied that 2 year requirement. My last by most important recommendation is to speak with your accountant. They may be able to help you in identifying what ultimately decides whether you are considered still residing at the house or not.

Good luck!