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ben-castleman
New Member

I start a new job in 6/22 (>50 miles). I bought my house in 6/20. If I sell Fall '21 can I take partial exclusion even tho sale would be a different tax yr than the move?

 
3 Replies
KochuK
Employee Tax Expert

I start a new job in 6/22 (>50 miles). I bought my house in 6/20. If I sell Fall '21 can I take partial exclusion even tho sale would be a different tax yr than the move?

Hi ben-castleman,

 

Below is from Page 6 of IRS Pub 523 Selling Your Home, Does Your Home Qualify for a Partial Exclusion of Gain?:

Quote

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 lo-cation at least 50 miles farther from the home than your old work location.

Unquote

https://www.irs.gov/pub/irs-pdf/p523.pdf 

 

More explanation from Journal of Accountancy:

REDUCED EXCLUSION SAFE HARBORS

Employment . Treas. Reg. §§ 1.121- 3(c)(1) and (2) provide that a sale or exchange is by reason of a change in place of employment if (1) the change occurs during the period when the taxpayer owns and uses the property as a principal residence and (2) the taxpayer’s or other qualified individual’s new place of employment is at least 50 miles farther from the residence sold or exchanged than was the former place of employment.

https://www.journalofaccountancy.com/issues/2009/nov/20091783.html 

 

Based on the above, the move for employment needs to occur while you own and use the main home to qualify for the partial exclusion.

 

If you sell the house in Fall 2021 and move for employment in June 2022, you main home would be in a different location.

Hope this helps.

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ben-castleman
New Member

I start a new job in 6/22 (>50 miles). I bought my house in 6/20. If I sell Fall '21 can I take partial exclusion even tho sale would be a different tax yr than the move?

This is very helpful and exactly the info I needed, thanks so much!

KochuK
Employee Tax Expert

I start a new job in 6/22 (>50 miles). I bought my house in 6/20. If I sell Fall '21 can I take partial exclusion even tho sale would be a different tax yr than the move?

A thumb up will be highly appreciated.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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