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Updated over 4 years ago on . Most recent reply presented by

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178
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Aaron Millis
  • Rental Property Investor
  • Montgomery, AL
187
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178
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No capital gains proof?

Aaron Millis
  • Rental Property Investor
  • Montgomery, AL
Posted

Hi BP,

So I’ve widely heard around here that if you live in a house for 2 of the last 5 years that you don’t have to pay taxes on your gains if you’re single up to $250K.

I’m contemplating selling a home that I lived in for 2 years. (2017-2019) Part of the time was just living there part of the time I was house hacking. Now the property is a normal rental and I don’t live there.

I’ve never sold a home so my question is how would I have to prove I lived there for 2 years to be exempt from taxes?

Most Popular Reply

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8,153
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3,695
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Basit Siddiqi
  • Accountant
  • New York, NY
3,695
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8,153
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Basit Siddiqi
  • Accountant
  • New York, NY
Replied

@Aaron Millis

It is a little bit confusing from your post if you lived in the property for the full 2 years.
What do you mean "part of the time was just living there"

Did you have another residence that you were living in during this time?

On the return that you file claiming the exclusion - you don't necessarily need to prove that you lived there. but you are signing the return that it is accurate. The IRS can ask for support in the event that they audit you.

In which case you can provide utility bills, drivers license showing home address, etc.

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Basit Siddiqi CPA
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