Hello community!
We sold a rental in Nov 2023 that we purchased in 2010 and lived in until Dec 2015.
We are now selling another property this month (Jun 2024) due to military retirement (which I believe is considered a PCS).
- that means selling 2 primary homes within 2 years
- both properties can be considered primary homes based on the "use" exclusions for military
- we have not yet claimed the capital gains exclusion on the Nov 2023 sale
Are we required to pay capital gains tax on one of these properties? The IRS sites says: "Generally, you're not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home."
- What does generally mean? To me it means there are exclusions/exceptions to rule, but having difficulty finding what those exclusions are. Pub 523 was helpful but didn't answer the question.
- would the second sale qualify for partial exclusion (since I am now retired as of this year)?
Any help that anyone can offer would be appreciated immensely.
Thanks
Eric
