When do the '2 years' begin, when inheriting a home?
Last year, in July, a family member passed away leaving me a house. 2 months later, in September, I moved into this house. Then, the deed was transferred 4 months after the death, in November. I have a reason to want to sell this home as soon as I can, but I also wish to avoid capital gain taxes.
I understand that the rule for real estate is that you must own a home and it must be your primary residence for 2 of the last 5 years in order to avoid capital gains, up to $250,000.
My question: Did the 2-year clock start ticking at the date of death, the date I moved in, or the date the deed was transferred? I've read through 121(d) and cannot find the answer. Any help you could provide would be AWESOME.