My question is about primary (only home) residence capital gains. I will be selling after owning for about 1 year. I believe we fall under the capital gains exception rule. Wife and I are moving for jobs. Irs publication 35 (or something like that..) names many scenarios how someone can get an exception. Including "unforseen circumstances" and taking a new job 50 miles+ away and others. My question is..we aren't being transferred...we quit, selling home snd moving. We'll then get new jobs in the new city. My concern is it seems like a loop hole...anyone could claim they moved because of a new job. They would move and just get a minimum wage job and tell the IRS "yup, got a new job". Is there any concern there?
As far as unforseen circumstances..after covid the job market here has not been good. But...how do I document this?? What if I get audited in 2022 or 2023?? I have an expected gain of $85K for 1 year in the home. As regular income...we'd be easily into 22% federal...big tax bill if it was determined I owned.
