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Updated about 2 years ago on . Most recent reply

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99
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Adeva Edobor
  • Banker
  • Huntington Beach, CA
100
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99
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Tax Exclusion on Sale of Primary Residence

Adeva Edobor
  • Banker
  • Huntington Beach, CA
Posted

I lived in my primary residence for 1yr and 9months since I owned it (I was a tenant in the same house for 2yrs prior to owning it) then I turned it into a rental. If I sell it within 5yrs from owning it, would I be able to exclude the tax on the gains up to $250,000

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Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
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Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
Replied
Quote from @Adeva Edobor:

I lived in my primary residence for 1yr and 9months since I owned it (I was a tenant in the same house for 2yrs prior to owning it) then I turned it into a rental. If I sell it within 5yrs from owning it, would I be able to exclude the tax on the gains up to $250,000

OK.  So you owned and occupied for 21 months, then rented it out.  The law is pretty clear about 24 months.

But if the move-out was unexpected and satisfies certain criteria, there may be an exception that allows you to prorate 21/24ths of the gain.

So what required you to stop occupying?  Did you move into a rental or buy again? 

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