Sale of second home

[snugsam]

Can you take the gain exclusion if the home sold was a second home in a different state as your primary home but you lived there at least 24 months out of the last 5 years of owning the home? 

[DawnC]

The law lets you "exclude" this profit from your taxable income. (If you sold for a loss, though, you can't take a deduction for that loss.)

• You can use this exclusion every time you sell a primary residence, as long as you owned and lived in it for two of the five years leading up to the sale and haven't claimed the exclusion on another home in the last two years.
• If your profit exceeds the $250,000 or $500,000 limit, the excess is reported as a capital gain on Schedule D.

More information on Home Sales