Do I qualify for capital gains military exemption for the sale of my home? Lived in home from 2011-2013. PCSd in 2013 and retired in 2014. Please advise.

sullinsbryan — Thu, 06 Jun 2019 00:28:14 GMT

The exception for Service personnel allows you to suspend...

NewGuy — Thu, 06 Jun 2019 00:28:15 GMT

The exception for Service personnel allows you to suspend the 5 year period while you are still on official extended duty. This would allow you to suspend the time between when you PCS'd and when you retired. If you ignore that time period and lived in the home for at least 2 of the last 5 years, then you would qualify for the exception. You would have to calculate exact dates you lived in the home and the time period after you moved away and before your retired to determine if you meet that standard.
https://www.irs.gov/publications/p523/ar02.html#en_US_2016_publink10009823

Service, Intelligence, and Peace Corps Personnel

If you are a member of the Uniformed Services or the Foreign Service, or an employee of the intelligence community in the Unites States, you may choose to suspend the 5-year test period for ownership and use if you are on qualified official extended duty. This means you may be able to meet the 2-year residence test even if, because of your service, you didn’t actually live in your home for at least the 2 years during the 5-year period ending on the date of sale.

Example.

John bought and moved into a home in 2007. He lived in it as his main home for 2½ years. For the next 6 years, he didn’t live in it because he was on qualified official extended duty with the Army. He then sold the home at a gain in 2015. To meet the use test, John chooses to suspend the 5-year test period for the 6 years he was on qualified official extended duty. This means he can disregard those 6 years. Therefore, John's 5-year test period consists of the 5 years before he went on qualified official extended duty. He meets the ownership and use tests because he owned and lived in the home for 2½ years during this test period.

topic Do I qualify for capital gains military exemption for the sale of my home? Lived in home from 2011-2013. PCSd in 2013 and retired in 2014. Please advise. in Deductions & credits

Do I qualify for capital gains military exemption for the sale of my home? Lived in home from 2011-2013. PCSd in 2013 and retired in 2014. Please advise.

The exception for Service personnel allows you to suspend...