Agnes, a calendar year taxpayer, lists her principal residence with a realtor on January 7, 2012, enters into a contract to sell on March 5, 2012, and sells (i.e., the closing date) the residence on May 15, 2012. The realized gain on the sale is $240,000. Which date is the appropriate ending date in determining if the residence has been owned and used by the taxpayer as the principal residence for at least two years during the prior five-year period?
A)January 7, 2012.
B)March 5, 2012.
C)May 15, 2012.
D)December 31, 2012.
E)None of the above.

Question

Quizplus · Accepted Answer

The appropriate ending date in determining if the residence has been owned and used by the taxpayer as the principal residence for at least two years during the prior five-year period is the closing date, which is May 15, 2012, when the sale actually took place.

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