can I sell a home within the two year time frame and avoid paying capital gains taxes?

Answer 1

You must pass the residency test...you must live in it for two years straight (or some time that adds up to two years), and if you are single, you can take up to $250,000 gain without paying income taxes on that. If you're married, filing jointly, you can take up to $500,000 gain without paying income taxes on that.

Answer 2

There are many exceptions which allow you to take a pro-rated exclusion and avoid capital gains taxes when you have lived in the house less than two years. Some of these include death of a family member, change in employment, involuntary conversion, multiple birth children causing you to need a bigger home. There are more.

See Publication 523 for more examples.

Answer 3

in case you lease your position you may ought to declare the proceeds of the lease as income.you may offset that income with any price generated by technique of leasing. If the lease is in stress once you promote it, there's a probability the sale won't be able to be finalized till the lease era has expired. Capital effective residences are paid on the huge difference of what the sources offered for and the unique cost plus improvements. The question of ways the tax regulation applies to leasing vs your occupancy is for the authentic sources lawyer.

Answer 4

If you sell the house because of a change of place of employment, or health, you might be able to take a reduced exclusion, prorated for the time you did live there under 2 years, that might still cover your gains.

Answer 5

You can sell you primary home that you have lived in for two yrs. and get the tax break, yes.

Answer 6

Sure--you can take a loss.