Question

Myles, a single taxpayer, purchased a home in September 2017. He owned and lived in the home for eighteen months. He then sold it in March 2019 for a long-term gain of $300,000. How much of the gain can Myles exclude from income on his return?

Answer 1

Answer:

$0

Explanation:

A single taxpayer like Myles, can exclude up to $250,000 in capital gains when selling their house if they meet the following criteria:

1. have owned and lived in the house for at least 2 of the last 5 years ⇒ Myles only owned and lived in the house for 18 months, so he doesn't qualify.
2. you can only use this exemption once every 2 years