quick question about selling my home

[theGlove]

Would I be taxed on gains if I wanted to sell my home (I've had it for 2 years). I read here:
http://www.irs.gov/newsroom/article/0,,id=106951,00.html

but it says you don't get taxed if you owned it for 5 years

 

[kranky]

To qualify for this exclusion of gain, you must meet ownership and use tests.

Ownership Test: During the 5-year period ending on the date of the sale, you must have owned the home for at least 2 years.

Use Test: During the 5-year period ending on the date of the sale, you must have lived in the home as your main home at least 2 years.

Sounds like you qualify if you lived there for two years.

 

[captains]

not good at reading these things....i would think disregard anything with the 5 years and just look at you owned your home for more than 2 years and would only have to claim the gain if you sold your house for more than 250K (if u sold it for 350K the u would have to report gain of 100K ) and if married the amount increases to 500K

 

[captains]

i think there is something about if u reinvest into another house right away u dont get taxed or something also...really havent a clue but for some reason i remember hearing this

 

[EagleKeeper]

One must have lived in the house for 2 years over the last 5 calendar years.

One does not have to have owned the house for 5 years.


The intention that for someone that bought the house 10 years ago, lived in it for the first 2 years and then rented it out for the past 8 years, to not avoid the gains on the house because it was not a recent primary residence.

 

[theGlove]

OK thanks all, yes I understand it now.
I won't get taxed on any gains up to 250k (since I'm single and have owned the house for 2 years now). Yeah that 5 year thing is just saying I have to live and own the home within 5 year period.

 

[Kelemvor]

Also have to check with the state because each state has their own laws about that as well.