I lived in home A as my primary residence for 4 years.
When I purchased home B in 2020, I rented home A for a year before I sold home A in 2022. I took the capital gains tax exemption on home A in 2022.
I have now lived in home B (as my primary residence) for 3 years. I'm considering selling home B in 2024.
The exemption says it is only available once every two years. Can I take the capital gains tax exemption on home B in 2024 after also using it in 2022? Both homes fit the independent use case but I'm not sure if the every 2 years rule means I can take the exemption again starting in 2024 or if it means 2025?
You'll need to sign in or create an account to connect with an expert.
Thanks for joining us today. According to the IRS you may take the exclusion only once during a 2-year period. That means if you sold home A in March 2022 (For example) then the sale of home B would have to be no earlier than March 2024 for you to be able to claim the Exclusion of gain on a primary residence.
You can refer to IRS publication 523 for more details: https://www.irs.gov/publications/p523
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
rjwoodho
New Member
mschleckser
New Member
jandan2000
New Member
chamonix
Level 2
frank790628
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.