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November 22, 2024
Question

Capital gains

  • November 22, 2024
  • 1 reply
  • 0 views

I have a contract for deed on my primary residence. I am the buyer.  I have met the terms of the contract and and I am in the process of transferring the deed from the sellers name to my name.  Since the property was not in my name for the last 3 years, but there was a contract in place do I have to wait 2 years to sell it  to avoid capital gains?

    1 reply

    DoninGA
    Employee
    November 22, 2024

    Since you were not the legal owner of the property for the past three years, the two years residency date only begins on the date you become the legal owner.

    MFK126Author
    November 22, 2024

    Hmm. Even if I've lived there with a contact for deed for 3 years?

    DoninGA
    Employee
    November 22, 2024

    The requirement for the capital gains exclusion requires that you have lived in and owned the property for at least two years.