Calculating 2 years for capital gains
The closing date on my house was 3/31/2017. When can I sell the house and avoid paying capital gains?
Most Popular Reply
Natalie Kolodij
Tax & Financial Services
Pro Member
- Tax Strategist| National Tax Educator| Accepting New Clients
- 4,543
- Votes |
- 3,798
- Posts
So assuming this is your primary home and you're aiming for the section 121 exclusion you need to both:
Own the home for 2 of 5 years
and
Occupy the home for 2 of 5 years
But those actually don't need to be the same 2 years, and they don't need to be continuous, it's aggregate.
So if you both purchased and moved into your primary on 3/31/17- then you would need to own and occupy it from that point until 3/31/19 at a minimum. But as mentioned above - the timing could be shifted around.
Kolodij Tax & Consulting