Home Selling in 95070>Question Details

David, Home Seller in 95070

Is there a limit of how many times of selling the home while claiminf the the home owner exempt of $250,000 each time?

Asked by David, 95070 Mon Oct 4, 2010

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In addition to consulting a tax pro, you need to keep scrupulous records. While the 24 months of the 2 years need not be consecutive, you can't simultaneously claim another home for the same months. The IRS verifies this with your tax returns-whatever home you claim on your return as primary residence is the one you can claim for the exemption.
0 votes Thank Flag Link Mon Oct 18, 2010
Yes, acording to IRS Section 121, it has to be one's Primary residence and owned for 2 years out of 5.
Therefore a sale cannot occur more than once every two years. So, the seller must have lived there for 2 of the last 5 years, and must not have sold another “primary” residence and gotten this tax break within the last 2 years.

However, so long as the seller does not sell a qualifying residence more than once every 2 years, the seller can do this as many times as s/he wants.
0 votes Thank Flag Link Tue Oct 5, 2010
Always have a good accountant when dealing with large tax issues. Check out the IRS rules at http://www.IRS.gov and there is a place to click on for searches for all your questions! How about a house in Santa Rosa, CA? Terry Bell, Realtor, Santa Rosa, CA
0 votes Thank Flag Link Mon Oct 4, 2010
Hi David,

This is certainly a tax question that should be answered by a tax professional; however, I have not heard of “cap” on the number of times this can be done.

Generally, under Section 121 of the Internal Revenue Code, a client can exclude up to $250,000 of the gain on the sale of a home if the client:

-Owned the home for at least 2 years during the 5-year period ending on the date of the sale (ownership test),
-Used the home as his or her principal residence for at least 2 years during the 5-year period ending on the date of the sale (use test); and
-Did not exclude gain from the sale of another home during the 2-year period ending on the date of the sale.

Best, Steve
0 votes Thank Flag Link Mon Oct 4, 2010
According to information on the IRS website ...

http://www.irs.gov/publications/p523/ar02.html

... the answer would appear to be no, there is no limit.

Please read the IRS document to confirm and also discuss with your accountant.

Sincerely,
Dan

Daniel Berman
Pacific Century Realty
List for as Little as 1%
Web Reference: http://www.LIST-FOR-1.com
0 votes Thank Flag Link Mon Oct 4, 2010
No, but as with any tax question, you should ask your CPA to confirm with the IRS. There are other restrictions including selling more than one qualifying residence within a two year period (it can happen).

Mark Burns
Coldwell banker Elite - Top 1.5% Worldwide
DRE #00896552 licensed since 1985
Over 600 Homes Sold in Silicon Valley
Web Reference: http://www.markburns.com
0 votes Thank Flag Link Mon Oct 4, 2010
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