1997 Tax Act Q & A

QUESTION:
I lived in my home for many years. Recently, I moved into an assisted living facility/nursing home. Do I have to move back into the home to qualify?

ANSWER:
NO. The Tax Code allows a person to sell his home even if it is no longer his principal residence, if he lived there for any 2 years within the 5 years prior to the sale.

Plus, up to one year in any licensed facility for a person unable to care for himself COUNTS TOWARD THAT 2 YEAR PERIOD.

In simple terms, you need have lived in the residence only 1 year in the last 5, if at least 1 year is in a licensed facility due to your inability to care for yourself, you qualify.

For more information, see 1997 Tax Act
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