Okay, we talked about the capital gains thing but do you understand how it breaks down if you haven’t lived there 5 years.
$250,000 Exclusion on the
Individuals can exclude up to $250,000 in profit from the sale of a main home (or $500,000 for a married couple) as long as you have owned the home and lived in the home for a minimum of two years. Those two years do not need to be consecutive. In the 5 years prior to the sale of the house, you need to have lived in the house for at least 24 months in that 5-year period. In other words, the home must have been your principal residence.
You can use this 2-out-of-5 year rule to exclude your profits each time you sell or exchange your main home. Generally, you can claim the exclusion only once every two years. Some exceptions do apply.
DAVID VAN NOY JR. |(816) 536-7653 CELL | davidv@prukc.com | www.door2doorkc.com
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