Hi, I'm about to sell a home which I purchased Jun 30, 2010, and it's closing escrow Jun 8, 2015. This will be just shy of 5 years of ownership. I've lived in it all of that time and have not rented it out.
On the IRS website, and elsewhere, all I can find is a general rule that you must have lived in the house 2 of the last 5 years of ownership to qualify for exemption from taxes for gains up to $250K for single and $500K for married.
But what if you're just 22 days shy of 5 years of ownership? What happens then?
One of the reasons I am selling is because I have a family member who is elderly and was in treatment for a serious health issue, stabilized for now but moving closer to work will enable me to go home and to provide care if/when needed going forward.. it was not feasible to do that with 40 minute commutes necessary from where I currently live.
Does anyone have familiarity with the tax law here for this particular scenario?