Home Sale Capital Gains odd scenario

[eddie]

Can somebody tell me if the following scenario would qualify for the
capital gains exemption?

A group of elderly siblings built a house 5 years ago and all lived in
it together but only had one sibling on the title as owner. That
sibling died 18 months ago and they somehow moved the title to another
sibling (not sure how, maybe quitclaim). They had the property listed
for sale recently but took it off the market thinking they had to wait
6 more months so the brother would own the house for 2 years and avoid
capital gains tax.

The way I read the IRS regs, I think I could lease with an option to
purchase now and they could move out and as long as I don't close
escrow on the purchase before the 2 years ownership is up they will be
able to use the capital gains exemption.

Am I correct?

[Arthur Kamlet]

In article <1180323682....@r19g2000prf.googlegroups.com>,

Probably.

The rule is that the two years you lived in as your main home
and the two years of ownership do not have to be the same two
years, so long as they both occurred within 5 years of sale.