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 â€œprimaryâ€ 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.
This is certainly a tax question that should be answered by a tax professional; however, I have not heard of â€œcapâ€ 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.
... the answer would appear to be no, there is no limit.
Please read the IRS document to confirm and also discuss with your accountant.
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