My dad is going to "gift" me the home I have lived in for 7 years and I have paid the mortgage directly on it for those 7 years. We plan to file the family transfer paperwork and submit "affidavit of property value" with the county soon. Arizona is a "first to record" state so the sale record will show the transfer occurring on the day we file but the "affidavit" has a separate sale date that can be filled in and I plan to use 1/2/2015 as the sale date since that coincides with the agreement we had.
My question is, what does the IRS use to determine the start date for me "living" there? I want to avoid capital gains tax which is a minimum of 2 years residence and ownership.
I have spoken to several accountants and none of them can answer this question definitively. Thank you
