In 2019 we purchased a home at the beach (80 miles away) that we plan to sell in 2023 and then move out of state in 2024. This home was our main residence during the pandemic and continues to be during summers. All in all we will have lived in the home 18 months in the past five years. My husband is changing office locations in 2024 (same employer). My husband experienced a $100K pay cut this year while the house was his main residence. My questions...do we qualify for a hardship exclusion to the 2 of 5 rule on the basis of 1) a significant pay cut or 2) a job location change? To be clear we plan to sell the house and then buy out of state so there will be a 6-9 month lag between the sale and when we actually are able to move. Also are there rules around timing of the hardship and sale date? We have a $300K gain so want to minimize capital gains tax and are close to meeting the 2 of 5 rule. We could also plan to live in this home another six months and qualify but are nervous about the housing market.
