Is there any change in the 24 months occupancy rule for selling a primary residence?
July 10, 2002
Subject: re: Tax exemption on residence
From: Al Merola
Date: Thu, 20 Jun 2002
Hi. Thank you for the opportunity for asking this question. Is there any changes regarding the 24 months occupancy rule in order to get the 250k per person or 500k per married couple? If they leave on the 22nd month or?. If they are buying a more expensive home does the exemption really matter?
Date: 28 Jun 2002
There is no change, except the IRS has issued regulations explaining the exclusion. You may qualify for a partial exclusion if you have to move before meeting the requirements if you have to sell the home because of a change in employment.
It no longer makes any difference if you buy a more expensive home after you sell your home. Those old rules were repealed when the $250,000/$500,000 exclusions were enacted.
We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.
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