Updated over 4 years ago on . Most recent reply
Capital Gains Exemption
Hello! this link was very helpful thank you so much for taking the time to post it. My question is regarding the Capital Gain Exemption...
What if I bought a Property: January 1, 2015 for $500,000
Rented it out until, January 1, 2016 and now value is $625,000
Then I Moved in and lived there for a year until January 1, 2017 and value now is $700,000
and then I sell The Property for $700,000.
Would I have exemption on the entire $200,000 of Gains or would I need to declare the first $125,000... Pay the Capital Gains Tax on that before I moved in And THEN Be exempt from the Remaining $75,000?
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Reviving this old thread for a quick clarification - I’m in a similar situation where I lived in a house for 11 months then moved for a job. According to this IRS site I believe I am eligible for a partial exemption of up to 11/24 * 250,000. My accountant only cited the 2/5 yr exemption when I asked her, so looking for for advice and maybe a new accountant.