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Richard
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I bought my first house in 1994 and I lived there till November

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I bought my first house in 1994 and I lived there till November 2009. I bought another house in October 2009 and moved in my new house at end of November 2009. I rented my first house from December 1st, 2009 till October 7th, 2012. Now I am selling my first house. Do I have to pay capital gain tax if my house is sold by December 15th, 2012?

Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good morning. As set forth in IRS Publication 523, you satisfy the ownership and use tests and thus qualify for the capital gain exclusion (up to: $250,000 if single, $500,000 if married) if you can show that you owned and lived in the property as your main home for either 24 full months or 730 days (365 × 2) during the 5-year period ending on the date of sale. If the house is not sold before the end of November, 2012, you will not satisfy this test.



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I forgot to give you the link to Publication 523: http://www.irs.gov/publications/p523/ar02.html#en_US_2010_publink1000200709
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