All Forum Posts by: Mark Samuals

Thanks so much Jason. Were talking 50-70k, so it seems relatively painless to move back in briefly (should only be around a month or so), to save on the cap gains taxes.

Thanks Paul, I read through that thread but didn't see where it said the proration only applies in certain scenarios. Can you point me to where it says that? Thanks.

I just reread the IRS publication, and it looks like the 250k exemption gets prorated based on the percentage of 2 years that you lived there. Can anyone confirm that this is correct? I.e. if I lived there 1.5 of the last 5 years, I get 75% of 250k capital gains tax free?

I purchased a property in California several years ago and lived in it as my primary residence for around 3 years. It is currently rented out and I am thinking about selling next year when my tenants lease is up. When the lease ends, it will have been about 35.5 months since I moved out and converted it to a rental. If I can get a quick sale I'll avoid the capitals gain tax, but that may not happen. Do I need to move back in until the property sells to ensure that I maintain it as my primary residence for 2 out of the 5 years up until the date of sale? Is there any leeway in terms of having the home on the market (and not used as either a rental or primary residence) when calculating the 2-of-5 years for the capital gains exemption? Thanks.