Thanks to a special IRS tax loophole, homeowners can exclude $250,000 to $500,000 of capital gains from the sale of a primary residence, so long as they have lived in the property for two out of the prior five years."

The Exclusions From Coverage for a standard ALTA Owner's Title Policy provides:The following matters are excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys’ fees, or expenses that arise by reason of:4.

For those curious, if this applies to them, just follow these general principals: To qualify for the Section 121 exclusion you must: Must live in the home in the past 2 of the 5 years 24 months non consecutive required Must have owned the home for at least 2 years Only one spouse needs to meet the ownership testBoth spouses need to meet the use test Neither spouse has excluded a gain / used section 121 in the past two years Must file jointly for the 500k exclusion

If nothing else, the title company will likely include a note in the title insurance excluding anything related to the restrictions.

The “headline” CPI (Consumer Price Index = inflation) for June declined 0.1% month-over-month, and the “core” CPI (excluding food & fuel) rose only 0.1% MoM.

Hey Jason thanks for the reply I’m actually looking for this type of loan to do a fix and flip, also right now my credit is under 600 which kind of excludes me from the majority of lending options.

More than anything this will exclude you personally from claim history (some of which is without merit and is the nature of the litigious society we live in). 

Some exclude short-term rentals and if that's in the fine print and your home burns or is damaged in a storm, it's not covered because you acted outside the policy limitations.

I recommend you determine what it will actually cost, then adjust your rent rate accordingly so it's affordable for the renter.The lot comes with the home :) the home is 3000sqft single family home(excluding  basement).

@Aline Elad You said "we" so assuming you're married you can exclude up to $500k, or $250k single, in capitals gains if you lived in the property for 2/5 prior years.