Article Date:
July 2018


Word Count:
603

 

 

Does Non-Home Use of Your Home Damage Your $250,000 Exclusion?


Let’s examine your principal home for qualified use. Why?

 

Because nonqualified use reduces your $250,000 exclusion ($500,000 if married filing a joint tax return).

 

Good Old Days

 

In the good old days—before 2009—you could

 

1.

buy a rental house or vacation home and use it as such,

2.

then move in and make that rental house or vacation home your principal residence for two years, and

3.

then sell it and qualify all the capital gain for the full $250,000 or $500,000 exclusion.1

 

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