title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Wednesday, March 02, 2005
 

Q:

Subject: Primary Residence Sale

Hasn't the capital gains rule of 2 out of aggregate of 5 years rule changed in Oct 2004?  Doesn't the IRS code now require you to OWN the residence at least 5 years and live in it as principal residence at least 24 of the 60 months before sale?  Or is that just for investment acquisition?  I am darn confused here.

Thanks,

A:

The only change was for residences that were acquired as part of a 1031 exchange.  I discussed it in my blog back in October.

Kerry Kerstetter

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