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jallmangulino
New Member

Can you SPLIT two years ownership for test period for cap gains? (i.e. in military, owned house 1 yr, deployed 5 yrs abroad, returned, lived in house 1 yr, then sold)?

It's clear you can suspend the test period for up to 10 yrs, but on IRS pub 523 both examples use contiguous 2 yrs ownership.  Can the suspension split the 2 yrs?  Thanks!
2 Replies
AmeliesUncle
Level 11

Can you SPLIT two years ownership for test period for cap gains? (i.e. in military, owned house 1 yr, deployed 5 yrs abroad, returned, lived in house 1 yr, then sold)?

Yes, it can be split.  That's not a problem.  

 

Entering it into TurboTax can be tricky so read the screens very carefully and be sure to double check that the program is properly applying the exemption.

jallmangulino
New Member

Can you SPLIT two years ownership for test period for cap gains? (i.e. in military, owned house 1 yr, deployed 5 yrs abroad, returned, lived in house 1 yr, then sold)?

Great - thanks for the quick reply!

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