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
buy a rental house or vacation home and use it as such,
then move in and make that rental house or vacation home your principal residence for two years, and
then sell it and qualify all the capital gain for the full $250,000 or $500,000 exclusion.
And you could do this ... Log in to view full article.