Question on capital gains tax, 2+ years owned home.

Investor · Mesquite, TX · Member since 2019 · 111 posts · 15 votes

I heard in a podcast that if you live in a primary home for 2 of 5 years of ownership, that you won't have to pay CGT when you sell it.

Just trying to make sure I got this right - say you bought a home in 01/2018 for say $200k. Your home is now worth $300k and you have been living there as a primary home since 01/2018. After next 01/2020 you can sell that home after that date and not have to pay CGT on the 100k, is that about right?

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Natalie KolodijBusiness Member
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Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
6y
Section 121 is the internal revenue code that relates to this.
If you both OWN and OCCUPY your home for 24 months of the last 5 years you receive an exclusion on the gain of $250k if single, or $500k if married.
Your example is correct
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