Question

I sold a home in February 2019 and claimed the capital gains tax exemption. how soon can i sell and claim this exemption again?

Forum|Forum|5 years ago
March 16, 2021
1 reply
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Per IRS publication 523, "If you didn't sell another home during the 2-year period before the date of sale (or, if you did sell another home during this period, but didn't take an exclusion of the gain earned from it), you meet the look-back requirement. You may take the exclusion only once during a 2-year period." I'm just trying to determine if this means 2 years on the calendar, or if i have to skip two tax years before taking the exclusion. If it's the former, i could sell today. if it's the latter, it sounds like i would have to wait until 2022.

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gloriah5200

It is referring to the "2-year period beginning on the date of sale of your previous principal residence". A two year period on the calendar would be evident going by tax years also.

If you didn't sell another home during the 2-year period before the date of sale (or, if you did sell another home during this period, but didn't take an exclusion of the gain earned from it), you meet the look-back requirement. You may take the exclusion only once during a 2-year period.

Additional information available in at the following link:

IRS Publication 523