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November 2, 2024
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Capital Gains Qualification

  • November 2, 2024
  • 1 reply
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if I rent a property, but don't own it for three years, then buy it and sell it a year later do I pay capital gains?

    Best answer by Anonymous_
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    1 reply

    Employee
    November 2, 2024
    No text available
    BennettjpAuthor
    November 3, 2024

    Thank you!

    November 3, 2024

    taxpayers who do not meet the two-year ownership and use tests may qualify for a reduced exclusion. A reduced exclusion is available if the primary reason the taxpayer sold a main home was due to any of the following:

    • change in place of employment
    • health
    • unforeseen circumstances

    for each of these, a safe harbor rule is available. if the safe harbor is not met, a taxpayer can still satisfy one of the above conditions based on facts and circumstances.