Do my parents have to pay taxes on this house?

[Ariel Johnson]

Hello, my parents are selling our old house. We lived there for from 2007-2014 and they are selling it in January. We did not live there in the past 2 years and we also have not lived in that state as we moved from GA (where the house is) to CA. I thought of you lived in a house for 2 years then you avoid capital gains tax. Can anyone clarify?

Thankyou in advance.

[Natalie Kolodij]

They have to have lived in the house for 2 of the last five years

2016- nope

2015-nope

2014-yes

2013-yes

2012-yes 

If they are married and the gains are under $500k they should be good, but always good idea to run it past their accountant first.