Subject:  tax question
From:  Gisella
Date:  Thu, 27 Oct 2005

Greetings,

Thank you for providing a great informative website. I have lived in a single-family home for 19 months. Is there a penalty if I sell the home before I have lived in it for more than two years?

Much appreciated, Gisella

Answer

Date:  Mon, 07 Nov 2005

Hello Gisella,

In order to qualify for the $250,000 per individual exclusion for sale of a principal residence, you must live in the home for more than two years. Sometimes you can get a prorated exclusion if the home must be sold early for unforeseen circumstances. Maybe you can just hold on for five more months?

Good luck!
Mike Gray

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