capital gains

[Rita228]

purchased our primary residence from the veterans administration as of foreclosure property in February 1983 with an installment loan contract, which is similar to a mortgage. in October 2024, I found out that the deed was never transferred from the veterans administration to our name. My husband passed away in October. I had my realtor and title company has the deed transferred as of November 2024.. Will I be entitled to get the capital game exemption if I sell my house before November 2026 and how do I prove that I’ve lived here?

[SusanY1 · Accepted solution]

Yes, you will still be entitled to the exclusion of gain due to sale of your primary residence since it's been your home far more than 2 of the last 5 years. 

It isn't likely the IRS will ask you to prove that you've lived there any specific amount of time, but if they do they will provide you with a list of items that are acceptable proof.  

Their own records likely show you at that same address for decades now, so I don't think it will be a problem.  

I'm sorry for the loss of your husband.