Anderson <aalbano5[at]cox.net> wrote:

- quote -

You should be OK.

You might have to prove your actual move out date to prove
you lived there as your main home for at least 2 years
before sale.

So closing of escrow on the old house establishes the two
year lookback date for ownership, separate from living there
as your main home.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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It would appear to this non-tax professional that a
residence would not become one's primary residence until one
makes it one's primary residence by occupying said residence
after removing oneself from one's current primary residence.

By the same token, one's current primary residence would
remain such so long as one occupies it as one's primary
residence.

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OOPS!
Before someone dumps on me, I hasten to add that, in
accordance with your plan, the current residence must be
owned as well as occupied on the two year date.

(This thought came to mind as the Send button was being
depressed.)

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nderson wrote:

- quote -

I don't know why you have been unable to find the answer as
all the IRS documentation on this subject specifically
refers to the 2 year ownership test and the 2 year use test.
When you look back 5 years from the date of sale did you
own your home for at least 2 years. In addition, when you
look back during that same 5 year period, did you use that
home as your main home for at least 2 years? You can only
have one main home at one time.

If you continue to use your current home as you main home
for the full 2 years and you own it for the full two years,
you would meet the test. It doesn't matter when you buy the
replacement house. Therefore, in your case, the date that
you actually occupy the replacement house as your new main
home and the date that the sale closes are critical.

--
Alan
http://taxtopics.net

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Anderson wrote:

- quote -

July 30, 2005, actually. The Code says 730 days. If you
sold your previous home and took the exclusion, you have to
wait until 2 years from that sale, as well.

- quote -

That looks fine. You won't get the exclusion for the
sale of the new home unless you wait until 2 years
from the sale of your current home and 730 days
from when you moved in the new home.

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"Anderson" <aalbano5[at]cox.net> wrote

- quote -

You had to have lived there, for two years, so don't base it
on the closing date, but the date you mived in (which often
are different dates).

- quote -

As long as you use the old home as your > > primary<<
residence, you are fine.

Spend more than half your nights there, keep your mailing
address at the old address until after the two year period,
don't change a thing until after the two year window passes
(and pad it by a few days). Also make sure your neighbors
know you still live there.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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I haven't found an answer to this scenario. Hopefully
anyone can else me out.

I purchased a home on July 31, 2003, which makes my 2 year
mark July 31, 2005. If I purchase another home with a close
of escrow in May/June of 2005 without selling my previous
home, will I automatically cut my magic 2 year mark short by
about 1 to 2 months? What I was planning to do is not move
into the new home until after July 31st, 2005 as well as not
sell the previous home until after the 2 year mark. I don't
plan on making the old home a rental, but rather hold on to
it for that 1 to 2 months to get to that July 31, 2005 date.
What makes this confusing to me is whether or not
purchasing the new home will automatically make it my
primary residence, or only until I move in and change my
addresses, etc. What proof is necessary and to whom do I
have to prove my residence with if that's even required?

Thanks in advance!

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