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
03376
3 Replies
LeonardS
Expert Alumni
Jan 29, 2020 2:50:52 PM
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
gangelucci
New Member
Jan 29, 2020 2:53:26 PM
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
Jan 29, 2020 3:02:52 PM
The IRS will look at your address, voting records, things like that for your residency period. You have the two years from living there.