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gangelucci
New Member

If you purchase a home, put down 20k, sign a purchase agreement and register with the city on a land contract for 3 months

And then get a mortgage 3 months later. If you sell the home at two years and want to avoid capital gain or receive the capital gain exemption, what is considered the start of the 2 year exemption? Th
3 Replies
LeonardS
Expert Alumni

If you purchase a home, put down 20k, sign a purchase agreement and register with the city on a land contract for 3 months

Generally, the time period begins when you actually start using the home as your residence.  The home will have to have been your home for at least 2 years during the past 5 years for you to qualify for the capital gain exclusion

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gangelucci
New Member

If you purchase a home, put down 20k, sign a purchase agreement and register with the city on a land contract for 3 months

So from the moment I lived in the home even on land contract it still counts toward the 2 year requirement. I was curious if it only counted if the house was mortgaged in my name.

AmyC
Expert Alumni

If you purchase a home, put down 20k, sign a purchase agreement and register with the city on a land contract for 3 months

The IRS will look at your address, voting records, things like that for your residency period. You have the two years from living there.

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