Capital Gains

[Dustinrs9]

If you own a home for 23 and a half months, and sell it 5 days before the 24 month period of ownership can you be exempt from the capital gains tax on the money made from the sale of the home?

[Mike9241]

why did you sell? that's an important question because you may be entitled to no home sale exclusion or most of it.

[Hal_Al]

Q. If you own a home for 23 and a half months, and sell it 5 days before the 24 month period of ownership can you be exempt from the capital gains tax on the money made from the sale of the home?

A. No.  You must have owned and lived in the home, as your primary residence, for a full 2 years (out of the 5 years prior to the sale) to qualify for the capital gains exclusion.

There are exceptions to the 2 out of 5 year rule: If you lived in your home less than 24 months, you may be able to exclude a portion of the gain. Exceptions are allowed if you sold your house because the location of your job changed, because of health concerns, or for some other unforeseen circumstance, like divorce or death.