Q. 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?
A.1. You are not using up an exclusion because you sold at a loss and you are not required to claim an exclusion even if you had a gain.
Q.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?
A. 2. You can each claim an exclusion on your share of the gain, as long as you meet the ownership and living in it rules.
Q. 3. We have no " closing date" on our new build. Should I use move in date to determine residency?
A.3. Yes.
Q.4. 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?)
A. The $114,583 is the maximum gain that you may (each) exclude, based on the prorated time of residency. If your actual gain was less, the lesser amount is excluded.
