TaxGuyBill
Level 15
10-31-2024
01:34 PM
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@Just-Lisa-Now- wrote:
But they wouldnt have any nonqualified use in that 5 year period if they lived there the straight 5 years prior to the sale.
They wouldn't have any Nonqualifed Use in that 5 year period, but that doesn't matter. Nonqualified Use is for any time a taxpayer owned the property and it was not their Principal Residence after 2008. Not having any within five years does not eliminate the taxable repercussions of Nonqualified Use before five years.