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Home Selling Q&A - Do I have to wait 2 years before I sell my home?

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Real Estate Broker/Owner with Top Agent Plus

Home Selling Q&A - Do I have to wait 2 years before I sell?

I have been asked this question before, but a recent inquiry made me realize that there may be other people that might be confused or unfamiliar with where the term 2 year rule came from and what it means.

The 2 year rule pertains specifically to a capital gains tax exemption for selling real estate. In other words, a homeowner may qualify to exclude up to $250,000 ($500,000 if  you file jointly) of the gain realized on the sale of their property if it has been their primary residence for at least 2 years out of the five years prior to the date of sale.

What is the 2 year rule?It does not mean that you can not sell your home if you purchased it less than 2 years ago. If you really want to sell and move, then take a look at the size of the gain (if any) and whether or not it makes more sense financially or personally for you to take the next step.

As with anything pertaining to the Internal Revenue Service, there are sepcific guidelines and qualificiations that must be met for the capital gains exemption. You can find out more about those guidelines by visiting the IRS website, or speaking with your tax professional.

Do you have a question about selling your home? Give me a call or email me. I would love to assist you!

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