Date: 19 Nov 2007
My wife and I purchased a rental property in 1975. We lived in it from 1975 to 1978, and then rented it out to the present.
Do we qualify for the capital gains exclusion if we sell the property in 2008?
Date: 27 Nov 2007
No. The general rule is in order to qualify for the exclusion for the sale of a principal residence, you must have owned and used the property as your principal residence for periods aggregating two years or more during the five years ended on the date of the sale or exchange. Since itís been nearly 30 years since you used the property as a residence, it doesnít qualify for the exclusion.
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