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Author: lorenzo2 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Capital Gains and House selling question... Date: 3/3/2003 5:12 PM
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The rules say you can exclude up to $500K of gain if you're married and file a joint return, if either of you has owned the house for two of the last five years, if both of you have lived in the house for two of the last five years, and if you haven't excluded gain on another home in the last two years.

So - if you can hang in there for a few more months and reach the two year figure, you can exclude all the gain. (I assume that even in So Cal your gain over two years is no more than $500K, and you meet the other requirements.) If you sell short of the two year mark, you can exclude part of the gain only if you're moving because of health or because your job moved. If you're just selling to move up to a new house (which is what it sounds like) you're going to get stung by CG taxes if you move before hitting the 2-year mark...

Details in Pub 523, Selling Your Home.

Lorenzo
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