turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Deciphering Your Tax Forms on Feb 19! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I am active duty military and am selling my house that I have owned for 23 months because I have been intentionally reassigned, Am I exempt from capital gains tax?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies

I am active duty military and am selling my house that I have owned for 23 months because I have been intentionally reassigned, Am I exempt from capital gains tax?

Yes you are due to being military & the move. 

Hal_Al
Level 15

I am active duty military and am selling my house that I have owned for 23 months because I have been intentionally reassigned, Am I exempt from capital gains tax?

Technically, your military (employment) move  only qualifies you for  a reduced capital gains exclusion. In your case, you are allowed 23/24 of the maximum $250,000 ($500,000 married) exclusion.  23/24 x 250,000 = $239,583.

I am active duty military and am selling my house that I have owned for 23 months because I have been intentionally reassigned, Am I exempt from capital gains tax?

Remember to review the PUB 3 for all military related rules ... this is from page 15 :

How much can you exclude?

You generally can exclude up to $250,000 of gain ($500,000, in most cases, if
married filing a joint return) realized on the sale or exchange of a main home in 2018. The exclusion is allowed
each time you sell or exchange a main home, but generally not more than once every 2 years.

What must you do to be eligible for the exclusion?

You will be eligible for the exclusion if, during the 5-year
period ending on the date of the sale, you:
• Owned the home for at least 2 years (the ownership
test), and
• Lived in the home as your main home for at least 2
years (the use test).

What happens if I don't meet the ownership and use tests?

 If you don't meet the ownership and use tests due
to a move to a new permanent duty station, you can exclude gain, but the maximum amount of gain you can exclude will be reduced. See Pub. 523 for more details.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question