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Since 1997, I have lived in and owned five different homes.

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Hello. Since...
Hello. Since 1997, I have lived in and owned five different homes. The first home was purchased in 1994, but sold in 1998. In each case, I lived in the home for over two years except the last one. I never made more than $60,000 on any of the homes and that is before selling costs and investments into the home(like finishing the basement off). The last home was the exception. I purchased it for $580,000 and sold it for $585,000. I lived in this home 23 months before selling it. If I read the 1997 tax law correctly, I have been okay without paying a capital gain tax on any single sale. In fact, the accumulated gain in all five homes is less than $160,000. Please confirm that despite buying the first home in 1994 and only living in the last home for 23 months does it disqualify me from the capital gain exclusion. Thank you.
Submitted: 1 year ago.Category: Tax
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9/14/2016
Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 1 year ago
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
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Hi, my name is Mark. I will be happy to help you with your questions. The law regarding the same of your principle residence changed around the year 2000. You are able to exclude a gain of up to $250,000 ($500,000 if married filing jointly) as long as you lived in the home as your principal residence for 2 out of the past 5 years. Theoretically you could sell your principal residence every two years and excluded the gain.

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Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 1 year ago

If your last example you would have a gain of $5,000. There are a few exclusion for unforeseen events. Is there a particular reason why you are moving?

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