Oregon
I can't seem to find the correct IRS publication... I'm hoping one of you can help.
I know as a married individual (filing taxes as married) we can be exempt from up to $500k in capital gains taxes on a home we've lived in for 2 or more years. I've heard, however, that you can sell before the 2 year mark and be exempt from a % of this $500k cap based on the amount of time in the residence. What I'm trying to find out is how to calculate this percentage. Is there a scale or is it just a straight percentage based on $500k being 100% of 730 days.
Anyway... I'm assuming there's an IRS publication explaining all this. If someone could point me in the right direction, I'd much appreciate it. Thanks!
I can't seem to find the correct IRS publication... I'm hoping one of you can help.
I know as a married individual (filing taxes as married) we can be exempt from up to $500k in capital gains taxes on a home we've lived in for 2 or more years. I've heard, however, that you can sell before the 2 year mark and be exempt from a % of this $500k cap based on the amount of time in the residence. What I'm trying to find out is how to calculate this percentage. Is there a scale or is it just a straight percentage based on $500k being 100% of 730 days.
Anyway... I'm assuming there's an IRS publication explaining all this. If someone could point me in the right direction, I'd much appreciate it. Thanks!