Evelyn, a calendar year taxpayer, lists her principal residence with a realtor on February 7, 2018, enters into a contract to sell on July 12, 2018, and sells (i.e., the closing date) the residence on August 1, 2018. The realized gain on the sale is $225,000. Which date is the appropriate ending date in determining if the residence has been owned and used by the Evelyn as the principal residence for at least two years during the prior five-year period?
A) February 7, 2018.
B) July 12, 2018.
C) August 1, 2018.
D) December 31, 2018.
E) None of the above.

Question

Quizplus · Accepted Answer

The appropriate ending date is the date of sale or August 1, 2018, since Evelyn sold the residence within the prior five-year period. She meets the ownership and use requirements since she owned and used the residence as her principal residence for more than two years during the five-year period ending on the date of the sale.

Evelyn, a Calendar Year Taxpayer, Lists Her Principal Residence with a Realtor