Yes, as long as you can prove to the IRS that it has become your primary residence. The thing it that if your profit is too large you may still have to pay capital gains tax. Remember, a married couple gets a $500,000 exemption and a single individual gets a $250,000 exemption. If the profit respectively is more that $500,000 or $250,000, you will still have to pay capital gains on the remainder of the profit. Having said that, there are other ways to write off capital gains depending on how you claim your taxes. Speak to your accountant to get the correct answer.
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783