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user17577323767
Returning Member

Capital Gains Tax

if I bought a house in May of 2020 and had went to stay with my mom in October 2022 through the holidays but ended up having health issues and have stayed there till Jan 2026 and then sell the house, how does the capital gains tax affect me? My house has still been my primary residence on all documents but confused about if I would still meet the 5 year criteria ? 

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2 Replies
user17577323767
Returning Member

Capital Gains Tax

Also should clarify that I tonight it was just going to be a temporary stay and have the texts of texting people I was coming back in the summer of 2023 and it wasn’t until beginning of jan 2024 that I realized I wouldn’t be going back 

Capital Gains Tax

don't know your exact situation so here's some info

Illness can be considered a temporary absence under specific conditions. These typically include:

  • Medical Documentation: A doctor's note or medical documentation is often required to validate the absence due to illness.
  • Duration of Absence: The absence should be for a limited time, generally defined by the employer's policies or state regulations.
  • Serious Health Condition: The illness must meet the criteria of a serious health condition as defined by relevant laws, such as the Family and Medical Leave Act (FMLA), which includes conditions that require ongoing treatment or significant time off.
  • Notification: Employees are usually required to notify their principal or HR department as soon as possible about the need for leave, often following specific procedures outlined in the employee handbook

 

during a temporary absence, you are considered as occupying the residence. the rules require occupancy for 2 out of 5 years before sale. since local laws vary and this may affect your qualifications, confer with a tax pro w

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