My son was the only title holder of the house. Reading Pub 523 loosely - nowhere does it say 2 of the 'last' 5 years. We all arrive at that by assumption. The word 'previous' does not equal 'last' and in this case it probably matters very significantly.
If that has not been challenged in court - nor can be challenged in court then couldn't the partial exclusion could apply to the same affect.?It states that 'if the main reason for your home sale was a .....health issue then one qualifies for a partial exclusion. It goes on eot say on page 6: 'you meet the requirements for a partial exclusion if a health related event occurred during your time of ownership and residence in the home... and that includes 'anyone else for whom the home was his or her residence'. I lived there the entire time and had a decline in my health requiring me to move.
Using the chart on page 7 I computed the time of residence for my son. I am not sure what are those requirements.He kept all of his personality in the house (his other residence was a rental), he paid all the utilities at the residence, had a car registered at the residence, got mail at the residence, (was not registered to vote), and spent a good amount of time there, making improvements. I would guess that it constituted about 10 months out of the 5 year period. That comes out to be a ratio of 42% of his time.
The 3rd part about 'the time that elapsed between the sale and date you last sold a home which took the exclusion' doesn't apply (this was his first home). Right?
I hope that I didn't make a mistake - my son doesn't have the savings to pay a tax on this - and I certainly don't (I am on benefits and penniless).
