ANSWERS: 3
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If the home is your primary residence and you've lived there for 2 of the last 5 years, you can exempt up to $250,000 of your home sale capital gains from tax. http://www.irs.gov/publications/p523/ar02.html#d0e1939
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My understanding is that no capital gains tax is owed on a primary residence that has been owned for 2 or more years. I would recommend contacting a tax professional though.
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The correct answer is "it depends" Please Google House bill H.R. 3648 which recently passed. Assuming the following - Primary residence for 2 of 5 years, and you have not remarried since his death, you are entitled to a maximum of $500,000 capital gains exemption IF you sell this house within 2 years of his death. Before this law, you had to sell the home within 1 year. Hope this helps, if not consult a tax professional.
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