Ask an AI Accountant

A free tool by

Question
My wife and I bought a home in 2021, lived in it for 15 months and sold it in 2022. We then moved 1000 miles away. Do we qualify for an exemption to the capital gains tax on the profit from the sale?
AI accountant’s answer:

Unfortunately, you and your wife don't qualify for the full exemption from capital gains tax on the sale of your home. The IRS typically requires that you own and live in the property as your main home for at least two years out of the five years before the sale to qualify for the full exemption.

However, there are exceptions to this rule if you had to sell your home because of a change in employment, health reasons, or other unforeseen circumstances. If your move was due to a job relocation, you might qualify for a partial exclusion. The amount of the exclusion would be proportional to the amount of the two-year requirement you met. For example, if you lived in the home for 15 months, you might be able to exclude up to 75% (15 months out of 24) of the regular maximum amounts ($250,000 for single filers or $500,000 for joint filers).

Remember, this is a general explanation and your specific situation might be different, so it's always a good idea to keep detailed records and consult with a tax professional if you're unsure.

Not Correct.
Looks good

Keeper’s AI Accountant V2

V2 is still a fine-tuned instance of GPT-4. Improvements over V1 include more comprehensive tax code embeddings, and better chain-of-reasoning retrieval system.

Estimate tax saving

Track and claim every eligible deduction with Keeper

Keeper is the top-rated all-in-one business expense tracker, tax filing service, and personal accountant.