Question

Nonqualified Use concerning sale of home

Forum|Forum|1 year ago
May 12, 2024
1 reply
0 views

I purchased my home May 2012 and lived in it until November 2016. At that time I rented it until I sold it in 2023. Since it was my primary residence initially, can I take the Section 121 exception?

Not A Product Question

DoninGA

Employee

Since you have not lived in the home for at least two years in the 5 year period from the date of sale you are not eligible for the section 121 exclusion.

You have to report this as a sale of business property.

J

jandan2000Author

Will living there for the last of 5 years qualify for 100% of the exception?

DoninGA

Employee

@jandan2000 wrote:

Will living there for the last of 5 years qualify for 100% of the exception?

No. You had to live in the home for at least two years in the 5 year period from 2018 thru 2023. Since you had not lived in the home since 2016 you are not eligible for the exclusion.