RE: the capital gains exclusion? $250k homeowner's exemption tax break for tear down flip property; Take $250000 exclusion for tear down and flip property? How long to wait?
Question: I own a house I've lived in for many years, say 10 years. I then tear down this house and on the new plot of land build another new house. Can I flip that house as soon as construction is completed, and qualify for the $250k homeowner's tax break? Or do I have to live in it for two years and then sell it?
My intuition says no, I must live in the new house for two years, even though I've lived in the old house for ten years before it was torn down.
I use Turbotax but there's no need to tell me where to find it on Turbotax, I can figure that out.
Thanks.
Web:
If you owned the home and used it as your residence for at least 24 months of the previous 5 years, you meet the residence requirement. The 24 months of residence can fall anywhere within the 5-year period, and it doesn't have to be a single block of time. All that is required is a total of 24 months (730 days) of residence during the 5-year period. Unlike the ownership requirement, each spouse must meet the residence requirement individually for a married couple filing jointly to get the full exclusion.
