I am selling my primary house I bought about 20 mo...
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Level 1

I am selling my primary house I bought about 20 months ago, since I have to move out of town for a new job. I am not expecting a major gain. Will I still owe tax on my capital gains?

 
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Level 15

I am selling my primary house I bought about 20 months ago, since I have to move out of town for a new job. I am not expecting a major gain. Will I still owe tax on my capital gains?

 
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Level 15

I am selling my primary house I bought about 20 months ago, since I have to move out of town for a new job. I am not expecting a major gain. Will I still owe tax on my capital gains?

You may be eligible for a partial exclusion of the cap gain ... read the rules in pub 523  https://www.irs.gov/publications/p523  and follow the TT program interview screens : 

 

Does Your Home Qualify for a Partial Exclusion of Gain?

If you don't meet the Eligibility Test, you may still qualify for a partial exclusion of gain. You can meet the requirements for a partial exclusion if the main reason for your home sale was a change in workplace location, a health issue, or an unforeseeable event.

Work-Related Move

You meet the requirements for a partial exclusion if any of the following events occurred during your time of ownership and residence in the home.

  • You took or were transferred to a new job in a work location at least 50 miles farther from the home than your old work location. For example, your old work location was 15 miles from the home and your new work location is 65 miles from the home.

  • You had no previous work location and you began a new job at least 50 miles from the home.

  • Either of the above is true of your spouse, a co-owner of the home, or anyone else for whom the home was his or her residence.

 

 
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Level 15

I am selling my primary house I bought about 20 months ago, since I have to move out of town for a new job. I am not expecting a major gain. Will I still owe tax on my capital gains?

Q. Will I still owe tax on my capital gains?

A.  No. Selling for a job change (minimum 50 mile move) qualifies as an exception to the 2 year rule.

 

The "partial exclusion"  is actually a "reduced maximum exclusion".  Since you're not expecting a major gain, you should be able to exclude the entire gain up $208,000 (20/24 x 250,000 = 208,000).

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