topic My job transferred me after purchasing a home 11 months ago. I made a profit on the home. Will I have to pay capital gains tax or is there a way for me to avoid it? in Get your taxes done using TurboTax

My job transferred me after purchasing a home 11 months ago. I made a profit on the home. Will I have to pay capital gains tax or is there a way for me to avoid it?

don-donaldson — Tue, 04 Jun 2019 19:36:04 GMT

I purchased a new home 3 weeks ago.

Normally you may exclude up to $250,000 ($500,000 marrie...

Hal_Al — Tue, 04 Jun 2019 19:36:07 GMT

Normally you may exclude up to $250,000 ($500,000 married filing jointly) on a home sale. The rule is that must have lived in the home for at least 2 years. If your move is based on a job change, relocating you more than 50 miles, you may still exclude the gain, but the maximum is reduced.

Since you only owned the home 11 months, you maximum exclusion is 11/24 x 250,000 = 114,600. As long as your gain is less than $114,600 ($229,000 Married) you will owe no tax. It is not necessary that you buy a new home in order to exclude the gain. You don't even need to report the sale, unless you receive a form 1099-S.

In other words, you were not there the required two years...

fanfare — Tue, 04 Jun 2019 19:36:09 GMT

In other words, you were not there the required two years, but tax law allows part of the exclusion for special circumstances, and changing jobs is one of them,

Thank you so much! Great news!

don-donaldson — Tue, 04 Jun 2019 19:36:10 GMT

Thank you so much! Great news!