Deductions & credits

The regulations have several "safe harbors" -- circumstances which will be accepted for the partial exclusion if you meet them.  You do not meet the safe harbor for a work related move since you work at home.

https://www.irs.gov/publications/p523

 

However, you might meet the "other facts and circumstances" rule.  You have to decide this for yourself.  If you want a professional opinion you can rely on if audited, you will need to hire your own professional, we can only offer suggestions and point you to the right rules.

 

Other Facts and Circumstances

Even if your situation doesn’t match any of the standard requirements described above, you still may qualify for an exception. You may qualify if you can demonstrate the primary reason for sale, based on facts and circumstances, is work related, health related, or unforeseeable. Important factors are:

  • The situation causing the sale arose during the time you owned and used your property as your residence.

  • You sold your home not long after the situation arose.

  • You couldn’t have reasonably anticipated the situation when you bought the home.

  • You began to experience significant financial difficulty maintaining the home.

  • The home became significantly less suitable as a main home for you and your family for a specific reason.