How soon do I need to sell home after moving to skip capital gain

How soon do I need to sell home after moving to skip capital gain

Rental Property Investor · Grand Rapids, MI · Member since 2019 · 22 posts · 19 votes

My family and I are going to be moving for work but we intend to keep our current home for a while despite moving to a new home. How soon would I need to sell my current home to qualify for the capital gains tax exemption because we’ve lived in the house longer than 2 years?

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  • Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    Before 3 years have passed since you move out.

  • Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    5y

    @Aaron May

    The sec121 exclusion requires that you lived in the home for 2 years of the past 5 years.  So, you have three years after moving out to close.  After that, it prorates.

  • Rental Property Investor · Grand Rapids, MI · Member since 2019 · 22 posts · 19 votes
    5y

    @Eric James thanks so much Eric

  • Rental Property Investor · Grand Rapids, MI · Member since 2019 · 22 posts · 19 votes
    5y

    @David M. Thank you!

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