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MJ-RR
Returning Member

Capital gains exclusion.

My wife and I purchased our first home in 1985, we lived there for ten years then moved and converted it to a rental.  In  January 2019 my wife and I moved back into the house and lived there as our primary residence until February 2021, while my sons family lived in our other home as their primary residence.  In Feb 2021 my sons family was out of our house and we moved back in, since then the previous house (used for rental until Jan 2019) was vacant and we sold it in January 2024.  So it appears to me that we meet the 2 in 5 rule of primary residence, 2019 and 2020, and 3 years vacant 2021, 2022 and 2023.  When I enter the information in Turbo Tax it calculates a large capital gains (about $250,000) and I don't see any where that the possible exclusion is even considered.  Based on the provided information would I qualify for the exclusion or not, and if so how do I get the program to calculate / recognize it?

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