Tax Question for Primary Residence

[Jessica Seppo]

Hello!

My question is if you sell your primary residence before the 2 year mark, can you still have your adjusted basis to avoid paying any taxes since it would be a breakeven or loss including the improvements made. I have all the receipts and numbers to show it.

Any advice is appreciated!

Thanks!

[Ashish Acharya]

Originally posted by @Jessica Seppo:

Hello!

My question is if you sell your primary residence before the 2 year mark, can you still have your adjusted basis to avoid paying any taxes since it would be a breakeven or loss including the improvements made. I have all the receipts and numbers to show it.

Any advice is appreciated!

Thanks!

If cost and improvements get you to a loss or break leven, you don’t need sec 121. Thus you don’t care about 2 year rule. 

Yes keep support for your basis