I changed my work location within 6 months of my primary home sale. I lived in the home for 1 year. Can I still quality for exception to the 2-year rule to exclude tax on capital gains?

I sold my home in Arizona in June 2022 and moved to Oregon. I lived in the house for 1 year and 1 day (so not the full 2 years to exclude capital gain). I am still working the same job, but I changed my official work location from Arizona to Oregon in December 2022. I realize I should have just changed the work location earlier. (I chose to change my work location, it was not required. I am working remotely anyways.).

Can I claim the sale was due to work location change to exclude the gains from capital tax?

175

Level 15

Apr 11, 2023 4:31:18 AM

The partial exclusion rule is if you change locations for job requirements ... since you worked from home in both locations I would have a hard time defending a position that you move soley due to job requirements especially since you did not change employers ... sounds like a personal decision to move.

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I changed my work location within 6 months of my primary home sale. I lived in the home for 1 year. Can I still quality for exception to the 2-year rule to exclude tax on capital gains?