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bsi.srini
Level 1

I lived in my primary home, CA from 10/2012 until 11/2017 and moved to TX. CA Rental 1/1/18 to 6/9/21. Am I eligible for the Exclusion? (IRS 121). Any covid relaxation?

 
3 Replies
Mike9241
Level 15

I lived in my primary home, CA from 10/2012 until 11/2017 and moved to TX. CA Rental 1/1/18 to 6/9/21. Am I eligible for the Exclusion? (IRS 121). Any covid relaxation?

you did not give us the date of sale if it has in fact been sold. assuming you sold it on 6/10/2021 you would not be entitled to any exclusion since it was not your principal residence for 2 out of 5 years before the sale.

based on court decisions no partial exclusion for selling for health, change of employment or unforeseen circumstances would be available because the sale is more than 3 years from the time you moved out.  you will also have to pay section 1250 recapture taxes on the depreciation taken or should have been taken during the rental period. 

bsi.srini
Level 1

I lived in my primary home, CA from 10/2012 until 11/2017 and moved to TX. CA Rental 1/1/18 to 6/9/21. Am I eligible for the Exclusion? (IRS 121). Any covid relaxation?

Thank you, so much. I have not sold my home yet.

tagteam
Level 15

I lived in my primary home, CA from 10/2012 until 11/2017 and moved to TX. CA Rental 1/1/18 to 6/9/21. Am I eligible for the Exclusion? (IRS 121). Any covid relaxation?


@Mike9241 wrote:

based on court decisions no partial exclusion for selling for health, change of employment or unforeseen circumstances would be available because the sale is more than 3 years from the time you moved out.


Do you have cites to any of these decisions?

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