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I read on the IRS website and it said that it had to be your primary residence to qualify. It was our primary residence before we moved. We moved persuing work and I bought a house in my name, which closed before the house in Wisconsin sold. So would the house in Wiconsin still have been our primary residence . It was at the time the house was put up for sale but not by the time the sale was final. Also if we do end up having to pay will we have to pay Wisconsin state taxes because the house sold in Wisconsin?