All Forum Posts by: Jake Drum

Would be ideal to try and qualify for §121 exclusion - which allows you to exclude up to $250k of gain for selling your principal residence ($500k for MFJ). The property must have been her principal residence for at least 24 months out of the last 5 years (do not have to be consecutive). Whether or not it would qualify would depend on her facts and circumstances. If she lived there for "a little over 6 months each year" that is a good fact for meeting the test. IRS Pub 523 has a lot of additional info, and it lists "Where you spend the most time" as the most important factor in determining your principal residence. See below for other important factors:

Is it the address listed on your:

• U.S. Postal Service address,
• Voter Registration Card,
• Federal and state tax returns, and
• Driver's license or car registration.

Because it is the IRC - there are plenty of additional exceptions and caveats to be aware of.