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Subject:  Re: Home sale gain exclusion Date:  10/22/2001  6:42 PM
Author:  JAFO31 Number:  54757 of 125866



4+/- years ago, 60+/- year old children move in with elderly parent 90+/- just after death of spouse of elderly parent, at elderly parents request to take care of elderly parent to keep them out of nursing home.

Fast forward 4 +/- years. Children are now preparing to retire, want to sell there home of 25+ years to offspring and move to FL. Taking elderly parent with them. Offspring has been living in the house rent free for 4 years and is prepared to purchase.

They had every expectation of moving back home, that's why it was never sold, just didn't realistically expect elderly parent to live this long.


Have the children blown their exclusion by moving in with elderly parent and staying as long as they did?>>>>

"The rules are in IRS Publication 523. You have to own it and have lived in it for 2 of the last 5 years. The lived in is in bold on page 12 of the publication. Unless someone knows some other exception, I think they're out of luck."

Is moving back to home for 1+ years to satisfy the requirement of 2 of the last 5 years out of the question?

Put a pencil to paper and figure out cost to you of 20% of gain versus delaying move to sunny Florida for roughly 2 years (or slightly less).

Regards, JAFO

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