Background: Current NJ Home purchased in 1987 with Gain Postponed from sale of a prior home. Second Home purchased in Florida in 2009. From 2018 to 2023, have spent seven months per year in Florida but have maintained NJ residency (i.e., Driver's License, Voting, Tax Returns, etc.). Intend to declare and fulfill requirements for Florida Domicile and Residency as of January 1, 2024.
Question: By when must I sell my current NJ Home in order to maintain and utilize the IRS Section 121 Exemption?
a. January 1, 2024? Effective this date the NJ Home is no longer the Main Home.
b. February 1, 2024? This is the latest date as of which I was physically in the NJ Home for 24 months in the last five years.
c. January 1, 2027: This is the latest date as of which the NJ Home was a Main Home for 24 months in the last five years.
I have already been advised that I cannot move the IRS Section 121 Exemption to my Florida Home as the Gain Postponed was related to the current NJ Home. Thus, all focus is now on the timing of declaring Florida residency and sale of the NJ Home. Losing the IRS Section 121 Exemption would be extremely painful, financially.
Thank you in advance for any guidance you can offer.
