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Old 02-22-2015, 08:18 PM
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Gains on two houses in military.

Trying to find the most advantageous way to file my taxes and still be legal.

I bought a house in Florida and lived there for 2.5 years. The military then moved me to Texas where I purchased another house.

I am guaranteed to move and sell my home in Texas after 4 years, currently lived in Texas <1 year. Unknown sell date of my Florida home, depends on my next assignment.

My house in Florida has appreciated by ~$100k (foreclosure bought at absolute bottom of market). I suspect my house in Texas will appreciate $10-20k.

I am in the military so I can live away from Florida for 10 years before the 5 year time period kicks in. BUT can I exclude the gains my Texas house during that time? Or should I just pay them as my Florida home is more?

I am also renting my Florida home, does that effect the 10 year exclusion? If it does can/should I just not claim it.

Thanks for your help.



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Old 02-23-2015, 01:12 AM
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I am in the military so I can live away from Florida for 10 years before the 5 year time period kicks in. BUT can I exclude the gains my Texas house during that time?=======>>>>>> You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve on qualified official extended duty as a member of the uniformed services or Foreign Service of the US. The IRS gives military families a break on meeting the ownership and use tests. These are the requirements to claim the valuable capital gains tax exemption on the sale of a primary home. you may be able to meet the 2-year use test even if, because of your service, you did not actually live in your home for at least the required 2 years during the 5-year period ending on the date of sale. If this helps you qualify to exclude gain, you can choose to have the 5-year test period suspended by filing a return for the year of sale that does not include the gain.

Or should I just pay them as my Florida home is more?=======>>>>>>as mentioned above; the period of suspension cannot last more than 10 years. Together, the 10-year suspension period and the 5-year test period can be as long as, but no more than, 15 years. You cannot suspend the 5-year period for more than one property at a time.

I am also renting my Florida home, does that effect the 10 year exclusion? If it does can/should I just not claim it.==========>>>>>>no;however, you cannot suspend the 5-year period for more than one property at a time. You can revoke your choice to suspend the 5-year period at any time. This change applies to home sales after May 6, 1997. You may use this provision for only one property at a time and may exclude gain on only one home sale in any two-year period. Although an amended return must usually be filed within three years of the original return’s due date.



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