Avoiding Capital Gains...

I'm selling my primary home and live in it for less than 2 years. Good thing that there is Reduced Maximum Exclusion of the gains (you can find this in publication 523).

My question is...when I file my gains do I need to specify of give my primary reasons why I qualify for the Reduced Maximum Exclusion? How do IRS track your reason of selling the house and if you qualify for the RME.

Thanks for your response.

Comments(1)

  • myfrogger23rd January, 2004

    There is no need to file anything to receive this exclusion. I would maintain records in case of an audit however.

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