capital gains

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purchased our primary residence from the veterans administration as of foreclosure property in February 1983 with an installment loan contract, which is similar to a mortgage. in October 2024, I found out that the deed was never transferred from the veterans administration to our name. My husband passed away in October. I had my realtor and title company has the deed transferred as of November 2024.. Will I be entitled to get the capital game exemption if I sell my house before November 2026 and how do I prove that I’ve lived here?

SusanY1Answer

Alumni - Intuit

Yes, you will still be entitled to the exclusion of gain due to sale of your primary residence since it's been your home far more than 2 of the last 5 years.

It isn't likely the IRS will ask you to prove that you've lived there any specific amount of time, but if they do they will provide you with a list of items that are acceptable proof.

Their own records likely show you at that same address for decades now, so I don't think it will be a problem.

I'm sorry for the loss of your husband.

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