Q: Could you please give me some help? My husband passed away September 5, 2001. I moved out of our home of 29 years shortly thereafter.
Now, I’m thinking about selling the house. When is my time limit up for selling the house and getting the tax breaks? Was it this past September, or do I have to the end of 2005? Thank you for your help.
A: My condolences on the loss of your husband. The good news is that you haven’t lost your valuable tax breaks yet.
Current IRS tax law states that as long as you have lived in your home for two of the past five years, you can keep up to $250,000 in profits tax free when you sell the house.
To take advantage of this, you must sell your home and close by that date (which will mean that you lived there two of the past five years) or move back into the house by September 4th, 2005 and live there for a year before you sell.
For more details, talk to your tax preparer.
Leave A Comment