This is a bit complicated but I'll try and make it as simple as possible. I purchased a house as my primary residence on 10/1/16. I lived in that house as my primary residence up until 7/1/19. I then had to move for a job change out of state. During that time I rented out the house with the intention of moving back one day. I recently sold that house on 8/15/22.
So obviously on face value I barely do not qualify for the 2/5 exception to the gains taxes by about a month. I tried very hard to sell it in time but the market shifted this year and it took longer than planned.
However I have read that due to the fact that my move was job-relocation related I may qualify for an exception based on the time I lived in it vs the time it was rented our during the 5 years prior to selling it. So just rough math for the sake of ease that would mean I lived in it approx 22/24 months before the time of sale and since it was due to an exception (job change) I should still qualify for up to 22/24 or ~92% of the 250,000 exception....or around $230,000. Am I reading this situation correctly?
Thanks!
