4/2016 my partner and i bought a cozy apartment (unmarried)
we had a terrible storm in 2018 and had to pay, in addition to HOA, a special assessment of 20,000$ for roof repair " Special assessment"
12/2020 I bought a plot of land
1/2021 we began to build a house (we are both listed on home building contract as mr and mrs so and so respectively with the general contractor, and it was supposed to be done 9/2021)
Due to covid delays the house was not completed till 1/2022
We sold our apartment (sale date is 5/2022) but we moved into the new build 1/2022
We have no closing " sheet" as we paid cash and built it ourselves but have permit documents with dates
Unfortunately now one of us has a job change >200 miles away and are faced with selling the new build :(
For our apartment sold 5/22 (bought 4/16):
We "lost" money net. So the silver lining is we may not be " using up" our exclusion?
For round numbers sake, we bought at 100K; had a roof special assessment and renovations (25 K); and sold for 115K minus agent fee and title portion = net 92,000 $
We will be getting a 1099 per the closing attorney.
For our new build:
We did a lot of work ourselves or sub-contracted where we have slips showing work dates and supplies by the subs and our cancelled checks
We anticipate the new build will not sell till next year but we hope to put on the market soon.
My concerns:
1. We report the apartment sale so we took an exclusion? Or are we not "using up the exclusion" because we have a net loss?
2. We have to sell before 2 years but have a job contract that is 200 miles away. Is it an issue that we are not married? Does IRS expect us to be separated and keep two residences by IRS or can we both use the exclusion (partial depending on date of new build sale) each?
3. We have no " closing date" on our new build. The county deed recorded from 2020 for land is all we have. Our general contractor said since it was cash he does not have a closing and he will not add our names and that is between " us".
When we signed contract, paid off subs, and he gave us a copy back his job was "done" but that is dated for 1/2021.
Should I use move in date to determine residency? Which means if we sell by Christmas we will be in there for 11 months and can take partial exclusion (11 months /24 months = 114,583 or that amount each?)
Thank you
