something else to consider....... and I'd ask others to weigh in....
Can you meet the 'use' test as part of Eligiblity test given you are already living 7 months of the year in Florida and have been doing so since 2018? look at page 3 under "Eligibility test" (right side):
"If you were ever away from home, you need to determine whether that time counts toward your residence
requirement. A vacation or other short absence counts as time you lived at home (even if you rented out your home while you were gone)."
https://www.irs.gov/pub/irs-pdf/p523.pdf
Does a seven months of the year in FL constitute a 'short absence' from the NJ home? I am not a lawyer, but my common sense brain says seven months being absent out of the year doesn't constitute a 'short absence'. And if that is the case, how can you pass the 24 months of the last 5 year residency test?
Let's say I have a point. So from 2018 - 2022 (5 years), you spent 25 months in NJ. That achieves the desired result since the residency use test doesn't have to be consecutive. And for simplicity of this example, let's assume that the 1st 5 months of the year are in NJ and the last 7 months are in FL.
On June 1, 2023, you move to FL for the last 7 months of the year and have no further intent on moving back to NJ. Now let's go to January 1, 2024, there are still 25 months in NJ and 35 in FL over the past 5 years. But on February 1, 2024, there are 24 months in NJ and 36 in Florida over the past 5 years. And on March 1, 2024, there are only 23 months in NJ and 37 months in FLorida over the past 5 years - the use test fails!
So doesn't the home really have to be sold by February 1, 2024? (or you need to stay in NJ for additional months to protect the 24 month clock?)
Encourges others to weigh in..... have you asked a tax lawyer in NJ whether that is an issue (as I suspect there are a number of NJ residents snow-birding to FL, so this is not a unique situation).
the whole question is avoided by selling the home prior to February 1, 2024 and not getting into the argument what constitutes 'short term absence'.; for the amount of money involved, why take the risk of being wrong?
