Avoiding Capital Gains...
I'm selling my primary home and live in it for less than 2 years. Good thing that there is Reduced Maximum Exclusion of the gains (you can find this in publication 523).
My question is...when I file my gains do I need to specify of give my primary reasons why I qualify for the Reduced Maximum Exclusion? How do IRS track your reason of selling the house and if you qualify for the RME.
Thanks for your response.
There is no need to file anything to receive this exclusion. I would maintain records in case of an audit however.