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ragemedia
New Member

Do I have to close on the exact date 2 years later to avoid Capital Gains tax

We closed on our current house Jan 15th, 2016, we are scheduled to sell this house on Jan 2nd, 2018.  This house has been our primary residence the entire time we have owned it.  Do we need to see if we can push closing to the 15th 2018 or will the capital gains tax not apply because we have used this address for two congruent years on our taxes.
1 Reply
DoninGA
Level 15

Do I have to close on the exact date 2 years later to avoid Capital Gains tax

You need to have lived in the home as your personal primary residence for a total of 730 days during the 5 year period from the date of purchase to avoid capital gains.

See IRS Publication 523 Selling Your Home page 3 - https://www.irs.gov/pub/irs-pdf/p523.pdf#page=3

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