Can I use the sale of inherited house that my daughter lived in as personal home sale?

[judymc6254]

Home was my mother's in another state.  My daughter lived in the home and I visited and stayed in the home at least once a month and during the summer.  Can I report as personal sale not as investment?

[CathiM · Accepted solution]

Unfortunately, unless this house can be considered your primary residence, it has to be a second home which is investment property. To consider it a personal sale for the exclusion: you must have owned your home and used it as your main residence for at least two years in the five-year period before you sell it. You also must not have excluded another home from capital gains in the two-year period before the home sale. If you meet those rules, you can exclude up to $250,000 in gains from a home sale if you’re single and up to $500,000 if you’re married filing jointly.