Capital gains start

[Christina Galdieri]

Question about capital gains. I purchased a lot in August of 2022. We put well, electric and septic on it in 2023 and now in 2024 we are putting a manufactured home on it. This will be my primary residence but I may want to move in a couple years as I would like more acreage. When would the 2 year rule commence? At the time the C/O is given to live in the mobile home? Thanks! 

[Michael Plaks]

Quote from @Christina Galdieri:

Question about capital gains. I purchased a lot in August of 2022. We put well, electric and septic on it in 2023 and now in 2024 we are putting a manufactured home on it. This will be my primary residence but I may want to move in a couple years as I would like more acreage. When would the 2 year rule commence? At the time the C/O is given to live in the mobile home? Thanks! 

There are two different 2-yr periods: you need to own it for 2 years and use it for 2 years as your primary residence. It's the second rule you should be concerned about, and it starts when you actually move in.