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I bought my home in 2011 and I am selling it in 2021 for 210,900. I lived it in the first two years and I am military, do I have to pay taxes on the capital gains?

 
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3 Replies
Carl
Level 15

I bought my home in 2011 and I am selling it in 2021 for 210,900. I lived it in the first two years and I am military, do I have to pay taxes on the capital gains?

Maybe. Maybe not. There's not really enough information to work with here to provide even an educated guess. Why did you live in it only the first two years? What did you do with the property the last 8 years? Leave it vacant? Rent it out? Something else?

 

I bought my home in 2011 and I am selling it in 2021 for 210,900. I lived it in the first two years and I am military, do I have to pay taxes on the capital gains?

Read the rules in Pub 3  starting on page 16 ...  https://www.irs.gov/pub/irs-pdf/p3.pdf

Carl
Level 15

I bought my home in 2011 and I am selling it in 2021 for 210,900. I lived it in the first two years and I am military, do I have to pay taxes on the capital gains?

I'm will aware of the rules. But if during the last eight years you were stationed back in the area within 50 miles of that property, and yet chose to live elsewhere, your extension period is directly affected by your reporting date to the duty station.  It also matters for the purpose of determining capital gain (taxable or not) on what the property was used for during the 8 years you were not living in it as your primary residence.

 

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