Foreign Service Officer Home Sale

Basteven · ‎October 9, 2020

I purchased a home in 2015 and lived in it until 2018 when I moved overseas as a foreign service officer. I lived overseas until 2020 but then was transfered to another location in the US that is 2000 miles from my home. I would like to sell the home in the summer of 2021 but want to make sure that I can avoid paying capital gains on the profit from the home sale.

Bsch4477 · ‎October 9, 2020

A taxpayer on qualified official extended duty in the U.S. Armed Services or the Foreign Service may suspend for up to 10 years of such duty time the running of the 5-year ownership-and-use period before the sale of a residence. This applies when the duty station is at least 50 miles from the residence – or while the person is residing under orders in government housing – for a period of more than 90 days or for an indefinite period. This election, which is an option for the taxpayer, applies to only one property at a time.

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Bsch4477 · ‎October 9, 2020

A taxpayer on qualified official extended duty in the U.S. Armed Services or the Foreign Service may suspend for up to 10 years of such duty time the running of the 5-year ownership-and-use period before the sale of a residence. This applies when the duty station is at least 50 miles from the residence – or while the person is residing under orders in government housing – for a period of more than 90 days or for an indefinite period. This election, which is an option for the taxpayer, applies to only one property at a time.