Tax Articles
Introducing Our Firm
Our Services
Real Estate Taxletter
Need Help?
Other Websites
Site Map

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Connect on Google+

Can I apply time rented to the capital gains exemption for selling a principal residence?

August 15, 2005

From:  John
Date:  Tue, 19 Jul 2005

I have lived in my home over six years. I rented it the first 4 1/2 years, then purchased it on 12/15/03. Must I defer the closing of the sale of the house until two years have passed - 12/15/2005, in order to be exempt from capital gains taxes?

Thank you very much for your help!



Date:  Mon, 08 Aug 2005

Yes (but hold the house until at least 12/16/2005), unless you meet one of the "reasonable cause" exceptions for a prorated exclusion. The house must have been owned and used as a principal residence for more than two years during the five years before the sale.

Good luck!
Mike Gray

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.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

Can I apply time rented to the capital gains exemption for selling a principal residence?

Home | Real Estate Taxletter | Articles | FAQ | Introducing Michael Gray, CPA | Need Help? | Other Links

Michael Gray, CPA
2190 Stokes St., Suite 102
San Jose, California 95128-4512
(408) 918-3162
Fax (408) 998-2766
email: mgray@taxtrimmers.com
© 2016
Subscribe to
Michael Gray, CPA's
Real Estate Tax Letter