Avoid Capital Gains Tax With Primary Residence

Q: What proof do we need to show we have lived in a house for 24 months in order to avoid capital gains tax? We have never registered to vote in our district.

A: You don’t need to show proof unless the IRS comes calling. If it does, you will need voting records, phone records, and mail records along with other evidence that you lived in the property as your primary residence.

You could also prove that this is your primary residence by keeping a calendar of how many days per month or year you lived in the property.

April 24, 2007.