Selling a house less than 2yrs

Forum|Forum|1 year ago
January 29, 2025
1 reply
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I bought a fixer house over a year ago thats 50+ miles away from where I live on the intention of having my 62 yo sister and 80 yo mom to move in to, so that my sister could retire and still live in the area; and allow my mom to live with her; and so my sister could sell her house.

Plans changed after my sister unexpectedly passed away before I could complete the renovation and had to relocate my mom closer to me and extended family.

I haven't sold a primary home in over 3yrs and stayed at the project house about 3 days a week while working on it for the past 15 months. I haven't taken any depreciation or have any rental time, as its not renovated.

Now I need to sell the house, but not sure if it qualifies for the irc121 exclusion on the gain or even able to use the 1031 exchange.

Any thoughts are appreciated.

Thanks

DavidD66

It does not qualify for the exemption on the exclusion on the sale of primary residence. To be eligible for the exclusion, you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale. Based on what you stated above, it was not your primary residence, so it does not qualify. You could possible do a 1031 exchange, since upon the death of your sister the property went from personal use to an investment.

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