I closed on a home on Jan 14, 2021, and will be closing on the sale of that home on May 25, 2022 (496 days).
I have relocated due to taking a new job (prior employer 6.5mi from home, new employer 99.2mi from home). Upon research, the IRS partial exclusion doesn’t simply provide a formula that I could locate to represent the actual partial exclusion amount.
As I understand, the formula is the following:
- Time lived in home (days): 496
- Time required to live in home under traditional standards (2 years) expressed in days: 730
- Sale price of the home: 249,900
(( 496 / 730 ) X 250,000) = $169,863 (maximum amount of single individual exclusion gains I can claim untaxed).
Is there any confirmation of this formula available, and possibly any resource regarding the ability to claim the loss on items included in the sale that were not originally purchased with the home (i.e. washer/dryer, fridge, blinds, etc.)?
