All Forum Posts by: Brian Schmelzlen

In order to have long-term capital gains treatment, outside of inheritance situations, you must have owned the property for at least 1 year.  Generally, I would go with the date in which you actually acquired title to the date.

To qualify for the Section 121 exclusion, it must have been your principal residence for 2 out of the past 5 years.  However, you are not required to live there for 2 years straight.  It can bookend having renters there, as long as you do truly use it as a principal residence.  Keep in mind that you would still be on the hook for any depreciation recapture.

If you do not qualify for the 2 years, you may be entitled to a partial exclusion depending upon the reason you moved.  I would talk to your CPA about if you would qualify.

Keep in mind though that the tax reform bill Congress is currently considering changes the timing requirements to 5 out of the past 8 years rather than 2 out of the past 5 years, so if that bill becomes law you may not qualify for the exclusion anyways.