Primary Residence capital gain exclusion, It's more complicated.

I can paraphrase the rule as:  if you live in a house 2 years out of last five years, you will enjoy SOME or ALL of the primary residence capital gain exclusion.

If you lived in a home first for 2 years, and rent for three and sold before 5 years anniversary, the 500K of the capital gain is tax free.  THis is true.  That's the example in the article. 

But that doesn't mean you can enjoy FULL exemption if you live in the house for ANY 2 years out of five. If you first rent a house for three years and then live in it for 2 years, only 2/5 of the capital gain could be tax free.  

Essentally, the rule just means if it is your home, IRS gave you three years grace period after you move out to enjoy FULL capital gain exemption.   Because during those three years you might find out the new house, new job and new city doesn't fit you and you could go back to your previous home; or you couldn't sell the house immediately due to a down market and you had to rent it out to wait for a better market.   

 

所有跟帖： 

• Thanks 柠檬椰子汁 . -north168- ♂ (0 bytes) () 06/04/2021 postreply 06:52:41

• 特别喜欢你的回贴。 -一溜小跑不回头- ♀ (161 bytes) () 06/04/2021 postreply 06:53:13

• 谢谢。 -柠檬椰子汁- ♂ (542 bytes) () 06/04/2021 postreply 07:34:01

• 咋不能释怀呢？ -守月- ♀ (125 bytes) () 06/04/2021 postreply 16:55:15

• what if: 收回来住两年，在租3年，再卖? -north168- ♂ (0 bytes) () 06/04/2021 postreply 06:57:03

• Reply -柠檬椰子汁- ♂ (1306 bytes) () 06/04/2021 postreply 07:04:17

• Many thanks. -north168- ♂ (109 bytes) () 06/04/2021 postreply 07:33:57

• Right -柠檬椰子汁- ♂ (0 bytes) () 06/04/2021 postreply 07:34:22

• 做为微地主，有个plan很重要。多谢了。 -north168- ♂ (0 bytes) () 06/04/2021 postreply 07:53:41

• 如果住了十年后再租出去十年然后直接卖出，中间没有再回去自住这种怎么算？ -BZinCA98- ♀ (0 bytes) () 06/04/2021 postreply 08:46:59

• GRE reading comprehension test. -柠檬椰子汁- ♂ (1562 bytes) () 06/04/2021 postreply 10:10:15

• 这里好像没说必须是先自住两年后出租三年才符合免税条件？ -gqc- ♀ (0 bytes) () 06/04/2021 postreply 20:10:56

• 这种情况下如果你最后多租三年比较划算。因为这个布什签的新法规是09年。在这 -Progressive- ♀ (173 bytes) () 06/04/2021 postreply 12:10:40

• 请问 -laoyangdelp- ♀ (244 bytes) () 06/04/2021 postreply 13:07:59

• for that much money, get an accountant, man! -柠檬椰子汁- ♂ (0 bytes) () 06/04/2021 postreply 14:52:57

• 谢谢，讲得太清楚了。 -Shine20- ♀ (83 bytes) () 06/05/2021 postreply 07:06:45