Hi - I was divorced a number of years ago and had to move from Oregon to California for work. In order to be able to be with my kids, I purchased a condo close to where they lived and visited on weekends. As the kids got older and one moved to California, it didn't make sense to keep it and I couldn't afford it, so I sold it in 2019. Would this qualify for a main home and, therefore, the tax exclusion for the sale of a home (pub. 523 mentions "The home is near: 1. Where you work, 2. Where you bank, 3. The residence of one or more family members...")? I never rented it and owned it for more than 5 years.
Peter
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my thoughts remain the same, even though it was your only home your owned: the rented home / apartment in CA was your primary residence so that the home you sold does not qualify for the capital gains exclusion.
the issue isn't so much if you owned it for 5 years and never rented it.
the issue is really where you lived. you must have LIVED in that residence for 2 of the last 5 years and the nights don't have to be consecutive.
And you can only have one primary home at a time. where did you live the rest of the time? Your subject line states "sale of additional home" so does that mean you owned a home that you lived in the other 5 days a week?
from what you shared, if you only lived in this condo for 2 of every 7 days over the past 5 years and didn't work near it , it doesn't appear you will meet the rule for the capital gains exemption.
Hi - thanks for the reply. I worked in CA (rented).
Regards,
Peter
my thoughts remain the same, even though it was your only home your owned: the rented home / apartment in CA was your primary residence so that the home you sold does not qualify for the capital gains exclusion.
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