I am selling my condo that I purchased in February 2018. I looked through the reasons for exemptions list for the capital gains tax on the IRS website and I think I may qualify for one. My girlfriend who lives here as well was laid off and unemployed from November of 2018-January 15, 2019. She collected unemployment until beginning of January. Does that qualify me for the partial exemption and what is the process for filing taxes next year to include that?
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Yes, you can possibly get the exclusion. You must substantiate the event as per the information at the bottom of the answer.
Unforeseeable events.
You meet the standard requirements if any of the following happened during the time you owned and lived in the home you sold.
1.Died;
2.Became divorced or legally separated;
3.Gave birth to two or more children from the same pregnancy;
4.Became eligible for unemployment compensation;
5.Became unable, because of a change in employment status, to pay basic living expenses for the household (including expenses for food, clothing, housing, medication, transportation, taxes, court-ordered payments, and expenses reasonably necessary for making an income).
Under Sale of Home, you would answer the questions that pertain to the exclusion. State the number of days lived there, and you will have the appropriate questions.
Showing facts and circumstances.
If your circumstances don’t match any of the standard requirements described above but the primary reason for sale, based on facts and circumstances, is work-related, health-related, or unforeseeable. Important factors are:
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