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New Member
posted Nov 19, 2019 6:19:37 PM

Is the gains tax on the sale of a home pro-rated? We are thinking about selling our house 2-3 months before our two year mark. We bought at $215k and might sell at $290k.

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2 Replies
Level 15
Nov 19, 2019 6:28:27 PM

The exclusion is not pro-rated. You may, however, qualify for a partial exclusion if the main reason for the sale was a change in workplace location, a health issue, or an unforeseeable event.

 

See https://www.irs.gov/publications/p523#en_US_2018_publink100073096

 

Otherwise, you must have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale. 

Level 15
Nov 19, 2019 6:29:41 PM

Under certain circumstances, you may be able to avoid paying taxes if you lived there less than 2 years.  The most common is moving due to relocating for work, but see Publication 523 for details:

https://www.irs.gov/publications/p523#en_US_2017_publink100073096