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Financial Planning / Tax Strategies


Subject:  Re: 2 of 5 rule Date:  9/25/2020  7:13 PM
Author:  inparadise Number:  131129 of 131416

but the husband moved out of state for a job and spent the majority of his time in that state.
Did the husband still live in the house?

Did he change his drivers license address?
His voting registration?
His residence according to tax forms?
Or was he temporarily working away from his primary residence and had a second residence near his job?

We have the opposite situation in that I moved to a new state a year before DH joined me when he retired. We bought a new place a little more than 2 years following the purchase of the first house. I had become a resident at the first house for the two years plus two weeks, with DH joining me for the second year. It's now a rental, in year 3 of ownership, but if we sell within the 5 year period, I assumed we could at least claim a pro-rated amount of up to $250K of the capital gains based on my record, not the full $500K we would have been eligible for had he moved at the same time as I did, or we had kept it as a primary residence for another year to secure his two years of residence. I changed my drivers license, registration, primary address on taxes, etc, when moving into the first house. His remained at the state he continued working in, until he retired and joined me in this state.

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