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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121144  
Subject: Re: Primary residence gain Date: 12/17/2013 2:19 PM
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I plan to sell my primary residence in 2014. It's clear for 2 of 5 years that it was primary - purchased in 1996. It's more than two years after my husband's death. There is more than $250k gain.

Remember that it's likely your basis changed when your husband died. Have you taken that into account when calculating the expected gain? See Pub 551 for basis information.

I have a secondary property I use - we bought it in Oct 2010. It was a rental property until July 2012. Can the two of five years begin on July 1, 2012 or do I have to have sold the other property first ?

No on both counts. Your 2 of 5 years on the purchase side started October 2010. Your 2 of 5 years of the use side will start when you make it your primary residence.

I would like to sell both and buy something else but I am wondering if it behoove me to cool my jets and sell the first one and then wait until the second qualifies as primary(if it ever does).

You'd have to work the numbers and see. Don't forget that you can only exclude gain once every 2 years.

Details are in Pub 523.

Rule Your Retirement Home Fool
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