home sale

[dompdeguzman]

I HAVE A CASE THAT MY CLIENTS SOLD THEIR HOUSE OCCUPIED FOR 35 YEARS THEN THE LAST 5 YEARS THEY RENTED IT.  AFTER SELLING IT THEY BOUGHT ANOTHER HOUSE WHERE THEY ARE STAYING SAME YEAR.  MY QUESTIONS ARE: ARE THEY ENTITLED FOR THE EXCLUSION OF $250,000 EACH? AND HOW ABOUT THE EXCLUSION IN REINVESTING THE SALE OF THE PROPERTY?

I NEED HELP!

THANKS A LOT

[IRonMaN]

No.

No.

[Accountant-Man]

No.

No such reinvesting thing unless the rental money went into another rental, and they met all the timing tests.

[Accountant-Man]

FYI, do a little reading. The answer about the $250K each exclusion is in your question.

<<THE LAST 5 YEARS THEY RENTED IT.>>

The exclusion refers to living in it for 24 months out of the last 60 months before selling. 

FLUNK!