[CPA Question] Is there a limit on live-in flip tax savings?

[Joe Cassandra]

My wife and I did a live-in flip for 2 years and sold for a $40k profit. 

We bought our next house less than a year later. 

We may rent this house out, but curious if we sold it again (it's 2 years later now), if we'd pay tax on the profit. Profit would be about $25k. 

Is there a limit how many times you use the homestead exemption? (Publication 503)?

If yes, we probably would need to rent it out :)

[Ashish Acharya]

Originally posted by @Joe Cassandra:

My wife and I did a live-in flip for 2 years and sold for a $40k profit. 

We bought our next house less than a year later. 

We may rent this house out, but curious if we sold it again (it's 2 years later now), if we'd pay tax on the profit. Profit would be about $25k. 

Is there a limit how many times you use the homestead exemption? (Publication 503)?

If yes, we probably would need to rent it out :)

Joe, we live very close :) 

Yes, you cannot  claim section 121 every year. There has to be a break of 2 years, so if you have already lived in the new house for 2 years and have not clamied exclusion in last two years, you should be fine.