Welcome to Curt's Chalk Talk. I'm Curt Sheldon with C.L. Sheldon and company. And today I'd like to talk to you about one of your military tax benefits. It has to do with what's called non qualified use.
Now, most Americans, if they live in their home for two out of five years, they can exclude up to $500,000 in profits on the sale of their primary residence. But there's a hitch on that, if they live in that house for say two years, move out for one year, And then move back in for two years, this one year period is considered non qualified use and they have to determine how much of that profit was earned during that one year period.
If you move pursuant to military orders, this rule doesn't apply to you. So you can live in it, move out, move back in and you don't have to claim the non qualified use. This is a special carve out in the tax law for military members. And there's quite a lot of other ones as well.
If you're about to make the transition from the military, check out our financial checklist. You can get it at www.clsheldon.com/tax. That's www.clsheldon.com/tax. And oh by the way, it's free.
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