Anonymous
Not applicable
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Hello,
Thank you for participating.
In certain cases, you can treat part of your profit as tax-free even if you don't pass the two-out-of-five-years tests. A reduced exclusion is available if you sell your house before passing those tests because of a,
- change of employment,
- change of health, or
- other unforeseen circumstances, such as a divorce or multiple births from a single pregnancy.
So, if you need to move to a bigger place to find room for the triplets, the law won't hold it against you.
The cost of any improvements that added value to your home, prolonged its useful life, or gave it a new or different use get added to the cost of the house when calculating the profit on the sale. Closing costs that you paid are deductible when calculating the profit from the sale of your home.
The article attached below has more information including examples:
‎June 8, 2022
4:21 PM