Capital Gains Exmptions
Hello,
So from what I have read, you are exempt from capital gains if your profit from sell of a home is 250,000 or less and you lived in the home for 2 years. My question is how does the IRS know where you lived? Do they use your postal address or address on file with your employer? I lived in my home for 1.6 years and due to covid, I came back to Texas last summer when I found out my parents were diagnosed with covid and unfortunately my mom didn't survive. 😞 Anyhow, the house was empty from May thru Sept at which time I returned then rented it out for the winter season. So technically I have not lived there for 2 years but I have owned the home for 2 years now and of those 2 years, 6 months were rentals. So again is there some other type of exemption or do I need to live there for another 6 months and if so how does the IRS verify. I'm assuming they would used either my new postal address or the state I file in. Thanks in advance