A portion of your gain would be excludable if your move brings you more than 50 miles closer to the location of your new job. The portion is calculated by looking at the shortest of the following three periods:
- The time between the date of a home sale that you excluded from income and the date of the sale of this home
- The time you owned the home that you are now selling
- The time you lived in the home that you are now selling
The partial exclusion would be based on the shortest of the three periods. If you lived there for 15 months and sold your old place 13 months ago, rather than being able to exclude the full $500,000 for a joint return, you would be able to exclude 13/24 or $270,000. Thank you @tagteam for correcting me on this.
@orchid6856 [Edited 03/09/2022|10:54 AM PST]
