I had a home gave to me by my parents. I sold it in less than two years. do i pay gains tax

[DexterS · Accepted solution]

Sorry, in order for the gain to be excluded it must be your principal residence for two of the last five years.

[fraysier123]

my dad gifted it to me as an inheritance
. do i still pay?

[DexterS]

You may also qualify for a partial exclusion based upon several circumstances.

See IRS Publication 523 for the rules for a Partial Exclusion.

[DexterS]

Yes you would still potentially have a taxable gain, it doesn't matter how the property was transferred.

But wait a minute - Gift and Inheritance are not the same thing.

If he "gifted" it to you, he transferred it to you prior to his death.  Your cost basis for calculating whether there was a gain or loss is his cost basis.  If it was a gift you might have a very substantial capital gain depending on how long he owned the property.

If you "inherited" the property your cost basis is it's "fair market value" on his date of death.  If it was only a few years ago you might have a very small gain, or even a loss.