I bought my house on 08/23/2013. I sold my house on 08/29/2016. the program is incorrectly saying that I didn't live in the home for at least two years before selling.

[IsabellaG · Accepted solution]

It seems like you may have entered the information backwards, or answered a question incorrectly. If you enter that you sold the home on 08/29/2016 (the first date you enter) and bought the home on 08/23/2013, you’ll get a question asking if you lived in the house for at least 24 months since August 29, 2011.

Then, as long as you only used the home as your principal residence, and didn’t sell another home after August 29, 2014 or claim any depreciation, you should be able to exclude the gain on the sale from tax. That’s the result I get when I enter a sale with those dates.

Please go over the section again and check your answers.