I lived in my house 23 months which i bought for 295k. I sold it for 440k. Then i bought another house 3 months later. do i have to pay capital gains tax?
by 
elgavo25
ANSWERS: 3
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You can exclude $250K in capital gains every two years. If you are married, that figure goes to $500K.
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must meet the use test and the ownership test to qualify for the exclusion. You must have owned the house at least 2 year out the 5 last years, ownership test. And you must had live in it for at least 2 years out the last five years, the used test.
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Since you did NOT own and occupy the first house for 2 years, you will not get the Section 121 exclusion UNLESS you sold the house due to unforseen circumstances: the house was two bedrooms and your wife just had triplets, you are getting a divorce and can't afford the house, you got a job transfer, etc, then the 23 months is prorated: 23/24 x either $250K or $500K depending on your marital status.
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