Simple Tax Question
I want to sell my house after living in it two years. Is the "occupy two out of last five years" tax advantage from closing date to closing date? What is the exact method of determining the two years? Thanks in advance.
Physical occupancy.
When did you move in? When are you planning to vacate? Is the interval between those two dates at least 730 days?
The best way to look at it is a 60 month "look back." You "look back" 60 months from the date the sale of your property closes (transfer of title) to make sure that you have lived in and owned the property as your primary residence for at least 24 months out of the last 60 months. The 24 months does not have to be consecutive.
[addsig]
The CLOSING date is not the important date. The date that matters as previously stated is when you occupy the principal residence. You have to live there for 24 of the past 60 months in order to qualify for the 250/500k exemption.