Hal_Al
Level 15

Investors & landlords

Simple answer:  wait another 9 months before you move in order for there to be a clear cut qualification for the home sale exclusion. 

 

Whether you qualify for the job change exception to the 2 year rule, is subject to opinion. Probably not.  Generally,  "when evaluating whether you satisfy the distance test, the IRS requires you to use the shortest commutable routes between two locations". I'm of the opinion, you don't qualify. 

 

The other exception to the 2 year rule is the "unforeseen circumstances" rule.  That, too, is  subject to interpretation.  Again, I don't think you qualify. 

For more on Unforeseeable Events/unforeseen circumstances, see 

https://www.irs.gov/publications/p523#en_US_2022_publink100073099

https://www.journalofaccountancy.com/issues/2009/nov/20091783.html

https://www.nolo.com/legal-encyclopedia/the-partial-home-sale-tax-exclusion-irs-approved-unforeseen-...

 

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