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Updated about 6 years ago on . Most recent reply
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Partial tax exclusion questions
Hey there,
I'd like to confirm my understanding of the Home Sale Exclusion for taxes, and the ability to claim partial.
Let's say we've lived in our home for 660 days (~1 year, 9 months and 21 days) over the past 5 years and we sell today. That would mean that we don't satisfy the 2 of 5 years rule, however we would be able to take a partial deduction.
In this case, married filing jointly we'd be able to exclude ~90.41% (660 days /730 days in 2 years) of $500,000, equating to being able to exclude gain of up to ~$452,050, correct?
I'm basically confirming that the "2 of last 5 year" rule isn't all or nothing!
Thanks,
Will