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April 19, 2020
Question

For receiving tax break on sale of home, should the home be owned for 5 years or more from date of purchase or it can be sold anytime during 5th year of ownership?

  • April 19, 2020
  • 2 replies
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2 replies

VolvoGirl
Employee
April 19, 2020

If you sold your Main Home see,

https://ttlc.intuit.com/community/home-ownership/help/is-the-money-i-made-from-a-home-sale-taxable/00/25690

 

It's based on the date of sale.

For a primary home, if you owned and lived in your house for 2 out of the last 5 years when you sell you can exclude the gain up to $250,000 for single or 500,000 for married from tax.  You can not take a loss on your tax return.

Hal_Al
Employee
April 19, 2020

You can receive the full tax break, if you sell it after owning it (and living in it) for a full TWO (2) years, not five (5).

 

The rule is you must have owned it and live in it, as you principal residence, for at least two of the five years prior to sale.