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Updated almost 10 years ago on . Most recent reply

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Jeffrey Townsend
  • Rental Property Investor
  • Kalamazoo, MI
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Keeping all the profit.

Jeffrey Townsend
  • Rental Property Investor
  • Kalamazoo, MI
Posted
BP family, If I was to purchase a home to eventually flip (house hack) how long would I need to live there in order to not get Tax's taken from the flip profit?

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Lynn McGeein
  • Real Estate Agent
  • Virginia Beach, VA
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Lynn McGeein
  • Real Estate Agent
  • Virginia Beach, VA
Replied

From the IRS Publication:

Eligibility Step 2—Ownership

Determine whether you meet the ownership requirement. If you owned the home for at least 24 months (2 years) during the last 5 years leading up to the date of sale (date of the closing), you meet the ownership requirement.

So you don't have to own it for 5 years.  The 5 years comes in if you, for instance, lived in it 2 full years, then rented it out for 3, then sold before the 5 year period, you would still qualify for the full amount. 

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