Discussion:Question regarding 2-year rule on sale of residence
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Discussion Forum Index --> Tax Questions --> Question regarding 2-year rule on sale of residence
| 4 August 2006 | |
| TP has owned his home for several years. He buys a new home, and converts his original home into a rental property. He lives in the new home for two years. At that time he sells the rental property, and gets the $250,000 exclusion - he had lived there 2 of 5 prior years.
I believe he has to wait two MORE years from the selling date of the rental home before he can get another $250,000 exclusion on his new home, even though he has already lived in the new home for the required two years. Is this correct? And would the sell date of the prior residence (the rental property) be the beginning date for the two year period? | |
| 4 August 2006 | |
| Unless he qualifies for a reduced exclusion or elects out of Sec 121 on the first home, you are absolutlely correct -- he needs to wait more than 2 years between sales. | |
Michaelstar (talk|edits) said: | 4 August 2006 |
| To add to Riley2's post - Yes, this two years is a fiscal year period not a calendar year period between sales. | |
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