I would like to preface this post with an apology to the board for posting a boring tax question, but here it goes...
My fiancé recently sold her home when we relocated from Columbus to Colorado Springs back in May ‘17. She lived there for almost 3 years (continuously) and made ~$20k on it. She just got her taxes done and the tax lady that she went to claimed it as capital gains on her 2017 taxes , which obviously caused her to get back substantially less than she would’ve otherwise.
I was under the impression that you only needed to live at the residence for 2 years to be exempt from capital gains less than $250k. Everything I’m finding online says
“you need to live in the home for 2 of the previous 5 years”, which is confusing. My question is, which is it... 2 or 5 years?
My fiancé recently sold her home when we relocated from Columbus to Colorado Springs back in May ‘17. She lived there for almost 3 years (continuously) and made ~$20k on it. She just got her taxes done and the tax lady that she went to claimed it as capital gains on her 2017 taxes , which obviously caused her to get back substantially less than she would’ve otherwise.
I was under the impression that you only needed to live at the residence for 2 years to be exempt from capital gains less than $250k. Everything I’m finding online says
“you need to live in the home for 2 of the previous 5 years”, which is confusing. My question is, which is it... 2 or 5 years?
