How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 12020
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

In May of 2013, I moved out of a house that I have owned since

Customer Question

In May of 2013, I moved out of a house that I have owned since 2009. My 2013 taxes show a different residence. I am thinking of selling the house this summer and wonder if I can still prevent capital gains taxes based on living there for 2 of the last 5 years. When is the exact cut off for residency and how is it proven?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.
Hi,...The way the test works (the way the law is written, literally) is that you must have lived in the house for ANY 24 months (not necessarily continuously) out of the last five years before the sale...."(a)ExclusionGross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more" (26 U.S. Code § 121 )
Expert:  Lane replied 1 year ago.
You don't prove this unless you are audited ... items that will be considered are mail delivery, voter registration, affidavits, etc ... IRS will say this is a facts and circumstance test ... again only if you were audited .. this is something that is simply reported, (nothing is filed with the return, in terms of proof)
Expert:  Lane replied 1 year ago.
Did you see my answer?