Sold house live in another state

[stech]

I live in Florida on rent and owned a house in VA. I owned the house since 1995 and sold in 2019. Because of my job, I live Florida. Twice a year, I visit my VA to take care of maintenance at all as it’s my house. Does this disqualify me from use test for exclusion of gain? In the past 5 yrs I did make my trips as most of my family is in VA. (have airline tickets, road trips receipts)

I consider myself as VA

[VictoriaD75]

You cannot take the exclusion if the home in Virginia was not your principal residence for at least 2 of the last 5 years before the sale. You would have to prove that the majority of your time was spent in Virginia, and that it was considered your tax home. If you primarily lived and worked in Florida during this time, periodic visits will not make the residence in Virginia "principal." Additionally, if you rented the home during this period, it is not a principal residence during the rental periods. 

For example, did you claim all income and file as a resident of Virginia on state tax returns? Was the majority of your time spent in Virginia versus Florida?

TurboTax will help you determine your exclusion.

To enter, follow these steps:

• Under the Federal menu, choose Wages & Income
• Expand the menu for Less Common Income
• Click Start/Revisit next to Sale of Home (gain or loss)
• Enter the information on the screens that follow

[stech]

@VictoriaD75 

House is owed my me & mom. Mom lives there forever. Never rented that place

i filed Florida state residents returns and did claim my mortgage & interest in Sch A for VA home. I rent in Florida and never owned 2nd home. My income was in Florida

I do have airline tickets and road trips receipt to show I went to VA solely purpose of taking care of my house. 

whether I spent 730 days in the past 5 years from date of sale, not sure

[RobertG]

A principal residence is the primary location that a person inhabits, also referred to as primary residence or main residence. It does not matter whether it is a house, apartment, trailer, or boat, as long as it is where an individual, couple, or family household lives most of the time.

In most cases, taxpayers must file taxes on capital gains from the sale of any property. However, when they sell their home of primary residence, they could qualify for an exclusion of a $250,000 ($500,000 if married filing jointly) gain if they meet the following requirements according to the IRS.

They owned the home and used it as their primary residence in at least two of the five years preceding the sale of the property.

While absences from the home for vacation or long-term medical care do not affect the standing of a principal residence, protracted lack of occupancy for other reasons may disqualify it.

If the taxpayer maintains more than one residence and divides their time on a seasonal basis between them, the dwelling they spend more time in would likely qualify as their principal residence. If the taxpayer owns one home but rents another residence they live in, the rented property would be their principal residence.

Other types of proof may be required to establish where one’s principal residence is. This can include utility bills with the occupant’s name and address, a driver’s license with the address, or a voter registration card.

See IRS Publication 523  for further information.

[stech]

@RobertG 

My concern is about the use test.

"They owned the home and used it as their primary residence in at least two of the five years preceding the sale of the property."

Does that 5 yr rule applies to selling of another house in 5 years?  The house is jointly owned by me & mom. She lived there forever. I wasn't around much in the past 5 years (if thats what the use test is saying). I went to Florida for job in 2010 and came back to visit parents & family members as most live in VA. I owned & lived that house in 1995. Doesn't that mean that I meet the 2 yr requirement?

I never owned another house, so VA house should be my primary house

[RobertG]

A primary residence is the primary location that a person inhabits.  If you do not inhabit it, it is not your primary residence, even if it is the only home you own. If you lived in Florida more than you lived in VA, your primary residence is in Florida.