Q. We bought our house on June 3, 2019 (closing date) for $700k and if we list the house to sell now and set our closing date to June 4, 2021 for $800k. I would be able to claim the tax exemption on the $100k profit from the difference and there won't be any tax charged for this transaction?
A. That's correct. But note: you must both own and live in the house for the two year requirement.
Q. If I am selling due to relocating for work, having lived 23month out of 24month required would qualify me for the partial credit that offset this $100k gain as well right?
A. Yes, but it's actually better than that. When the move is for work, the proration is not on your exclusion but on the maximum exclusion. For example you owned and lived in the house 23 months. 23/24 = 95.8%. The maximum exclusion (filing Single) is 0.958 x 250,000 = $239,583. Since your $100,000 gain is less than that, you may exclude the whole amount.
