Property Sales Gains Exemption TEXAS

[Christine Nicholas]

Hi!

We have lived and owned in our current home since Aug 20 2013. We have just purchased another home to move into. I understand you have to lived/ owned the home for 2 out of 5 years in order to be eligible to be exempted from property sales gains tax? The home sales gain will be under $500k (filing jointly). We have lived and owned for 4 out of 4 years, but in order to take advantage of this tax break, does it mean we cant sell until Aug 20 2018?

Thanks!

[Jim Cummings]

Christine

Under current law, IMO, you have satisfied the residency requirement. There is NO requirement that you live there or own the property for 5 years.
The proposed NEW tax plan, as I understand it, changes the residency requirement to live in the property for 5 of the last 8 years. I think there is a transition (grace) period for you to sell and still take advantage of the capital gains exclusion. As in most legislation - nothing is FINAL - until it's signed.

JIM