I have a question about my primary residence. I have owned a house in VA for over 30 years and lived half- time between VA and FL since 2016. By half-time, I mean about 180 days each. When I read the IRS pub 523, it states you have to have 2 years out of the last 5 living in the house for the exemption. However, it also states the time does not have to be a single block of time. My question is, does living in the VA home 6 months out of the year allow me to avoid paying the capital gains tax on the sale.
I do maintain an FL driver's license and vote in FL and do not change each time I relocate.
Thanks
Gary
But, you can only have one home as your principal residence. If you have established residency in Florida, and filed your taxes as a Florida resident for the past several years, it is likely that your Virginia home will be seen as a second home and not eligible for the principal residence exemption.
The tax law states that a seller who has owned and used a home as a principal residence for at least 2 of the last 5 years before the sale can exclude from income up to $250,000 ($500,000 for married filers) of gain. TurboTax will help you determine your exclusion.
To enter, follow these steps:
But, you can only have one home as your principal residence. If you have established residency in Florida, and filed your taxes as a Florida resident for the past several years, it is likely that your Virginia home will be seen as a second home and not eligible for the principal residence exemption.
The tax law states that a seller who has owned and used a home as a principal residence for at least 2 of the last 5 years before the sale can exclude from income up to $250,000 ($500,000 for married filers) of gain. TurboTax will help you determine your exclusion.
To enter, follow these steps: