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
Labels: 1031