How do I aviod capital gains tax on the sale of my home?

Question

I'd like to sell my home but I've only owned and lived in it for 2 years. If I sell now, only after 2 years, can I avoid payng the capital gains tax?

Answer 1

u cant

Answer 2

Two years is the magic number - but not one year and 364 days.  If you've owned it for two of the 5 years immediately before the sale, and lived in it as your main home for 2 of those same 5 years, you can exclude up to $250K of gain ($500K on a joint return) from being taxed.

If the 2 years is very close, be sure that you don't close on the sale until you meet he 2 years.

Answer 3

If you lived in it for at least 2 of the past 5 years, $250,000 ($500,000 married filing jointly) of capital gain is excluded from federal income tax.  So unless you live in it for less than 2 full years, or your home gained more than that in value, there is no tax.  And there are some exceptions for partial exclusion if less than 2 years.

Answer 4

You can't avoid it... here is the latest and greatest...

http://www.austinhomeloan.com/articles/c...