@RTR52 wrote:
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?
You only use the exclusion if you have a gain. If you sell at a loss you do not use the exclusion. Even if you have a gain, using the exclusion does not happen automatically. You choose whether or not to use the exclusion for a particular sale. If you don't want to use it on the sale of the apartment, don't use it.
The special assessment was for repairs, not an improvement, so you probably cannot add it to your basis. Check with a tax professional, or maybe someone else will comment on that.
@RTR52 wrote:
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? . . . can we both use the exclusion (partial depending on date of new build sale) each?
You can each claim a partial exclusion on your individual tax returns. Your partner qualifies for the partial exclusion because "a co-owner of the home, or anyone else for whom the home was his or her residence" (i.e. you) is moving for a new job that meets the distance requirements. You don't have to be married.
But only an owner or co-owner can report the sale and claim the exclusion of gain. From what you have written here, it's not clear who actually owns the home. The building contract does not determine ownership. There's a deed that shows who the owner is. You said "I bought a plot of land." If you are the only owner, then you have to report the entire proceeds of the sale on your own tax return, and only you can claim the partial exclusion. Check with a real estate lawyer to determine who actually owns the home that you are selling.
@RTR52 wrote:
3. . . . Should I use move in date to determine residency?
Yes, the date that you moved in and started living there is the beginning of your period of residence.
