Carl
Level 15

Get your taxes done using TurboTax

Did you use this home for anything other than your primary home?
YES YOU DID!

If you lived in the property AS YOUR PRIMARY RESIDENCE for at least 2 of the last 5 years you owned it, then your first $250K ($500K if filing joint) is exempt from income tax. Now you state the property was purchased in 2010. So the "lookback" for the tax exclusion only looks back to Jan 1, 2009 or your closing date on the purchase if it was *after* Jan 1, 2009.

So if you closed on July 1st, 2019 the look back is to your purchase closing date in 2010. If the property was NOT your primary residence for any period of time between your purchase closing in 2010 and your sale closing date in 2019 *AND* *YOU* were the last occupant to vacate the house prior to the sale, then you *DO* have unqualified use of the property. Based on your dates of unqualified use, your tax exclusion will be pro-rated.