We are planning to sell our primary home soon, but need to clear up a timeline that could prove expensive.
Evaluating Publication 523…
- None of the automatic disqualification reasons apply to us.
- The home was purchased in 2010 and has been our primary residence.
- We lived in the home until moving to Germany in July 2021.
- We are married filing jointly.
- The profit from the home will be less than $500k
Based on that, I believe I would have to sell by July 2024 to avoid capital gains. However…
- Eligibility exception – qualified extended duty.
- I am a Department of Defense civilian on orders working in Germany.
- I do work for an employer listed under ‘qualified extended duty’.
- I am not active-duty uniformed service military.
- We will be stationed in Germany from 2021-2027.
- Germany is more than 50 miles from my state.
- I do not live in military housing.
- I own no other home.
- The home has been rented out since July 2021.
Questions:
- Am I correct in believing we qualify for this extension exemption?
- How do I prove ‘qualified extended duty’ beyond my official orders? (DD1614/SF-50)
- If we stay in Germany as expected until July 2027, what would be the latest we could sell and still be exempt from capital gains?
Thanks for any help and advice.
