Does The Two Year Rule Start Over For Us?
My wife and I were married in May of 2005. In July of 05 she sold her house that she owned with her ex boyfriend. They owned the house for about 9 years and of course are taking the 2 yr exclution. I bought the house we currently live in (in my name only) in April of 2004. Does the sale of her house reset the clock for my/our two year exclution? I dont expect the profit to be over 250k next April...which would be my two years. Hope this make sense. Thanks, Jim
Every two years from the date as occupied as primary residence, yours has nothing to do with hers. Both you and her if married can take 250000 nontaxable gain on sale of real estate used as primary residence for at least two of the previous five years.
Thank you...this is great news. I appreciate the response and sincerly hope you getitquik! jim[ Edited by SOAPY on Date 11/08/2005 ]