I am in charge of my dad’s property.
My father 82 urs old, lives in Mexico and owns a 2 flat that he rents out here in the US , he has asked me to sell it. In order to take advantage of the 1 time tax free sale of a property for people over 65 does the property have to be owner occupied?
Thanks for your question.
Here are the rules for tax-free sale exclusion of a principal residence:
To claim the exclusion, you must meet the ownership and use tests. This means that during the 5-year period ending on the date of the sale, you must have:
Owned the home for at least 2 years (the ownership test), and
Lived in the home as your main home for at least 2 years (the use test).
Rental property is not excludable unless it meets these tests.
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