Message Font: Serif | Sans-Serif
No. of Recommendations: 1
We live in a duplex home where we live in one half and rent out the other half. If we live 2 1/2 years in one side, and 2 1/2 years in the other side, and then sell both, can we exclude the capital gain on both sides of the duplex?

I don't think so. You can only use the exclusion for one sale every 2 years, and this looks like two sales to me, even though it's one piece of real estate.

What if we convert the duplex to condos, live in one side for 2 1/2 years and then sell it. Then, move to the other side and sell it 2 1/2 years later, can we exclude the capital gain from both sales?

This should work. Actually, I don't see why you couldn't convert it and sell the part you've been living in immediately, then move into the previous rental and wait out your 2 years.

Phil Marti
VITA Volunteer
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.