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jtdeyoung1
New Member

I've sold 2 homes this year to relocate for personal and work related reasons. Can I claim exclusion on capital gains tax for the larger profit generating home?

Both homes were sold within a year of their respective purchase and were the primary residence for my family and I.  They are both subject to the capital gains as it appears on paper that they were sold at a decent profit.  Both sales were required to move for work outside of 50 miles from each respective location.
4 Replies
xmasbaby0
Level 15

I've sold 2 homes this year to relocate for personal and work related reasons. Can I claim exclusion on capital gains tax for the larger profit generating home?

You are posting from TurboTax Live.  You can arrange for the Live help you are paying the extra fee for with your questions from 5 a.m. to 5 p.m. Pacific time.

https://ttlc.intuit.com/questions/4124827-how-do-i-connect-with-a-tax-expert-in-turbotax-live

https://ttlc.intuit.com/community/tax-topics/help/learn-about-turbotax-live-s-chat-feature/01/981746...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Hal_Al
Level 15

I've sold 2 homes this year to relocate for personal and work related reasons. Can I claim exclusion on capital gains tax for the larger profit generating home?

Q. Can I claim exclusion on capital gains tax for the larger profit generating home?

A.  Yes, probably. 

 

It appears that you already know, you can only claim one sale.  You may choose either one, depending on the details. See Mike9241's reply. The maximum excludable amount is reduced for the time you actually lived in it, since you don't meet the 2 year rule.  For example, you lived in it 4 months; your maximum exclusion is 4/24 x $250,000* = $41,667.  You may exclude the full amount of your gain, but not more than $41,667.

 

*$500,000 Married filing jointly

Mike9241
Level 15

I've sold 2 homes this year to relocate for personal and work related reasons. Can I claim exclusion on capital gains tax for the larger profit generating home?

principal residence reg 1.121-1(b) 

(2) Principal residence. In the case of a taxpayer using more than one property as a residence, whether property is used by the taxpayer as the taxpayer's principal residence depends upon all the facts and circumstances. If a taxpayer alternates between 2 properties, using each as a residence for successive periods of time, the property that the taxpayer uses a majority of the time during the year ordinarily will be considered the taxpayer's principal residence. In addition to the taxpayer's use of the property, relevant factors in determining a taxpayer's principal residence, include, but are not limited to -

(i) The taxpayer's place of employment;

(ii) The principal place of abode of the taxpayer's family members;

(iii) The address listed on the taxpayer's federal and state tax returns, driver's license, automobile registration, and voter registration card;

(iv) The taxpayer's mailing address for bills and correspondence;

(v) The location of the taxpayer's banks; and

(vi) The location of religious organizations and recreational clubs with which the taxpayer is affiliated.

AmeliesUncle
Level 13

I've sold 2 homes this year to relocate for personal and work related reasons. Can I claim exclusion on capital gains tax for the larger profit generating home?


@jtdeyoung1 wrote:
 Both sales were required to move for work outside of 50 miles from each respective location.

 

If both sales qualify, you probably can exclude the gain from BOTH sales.

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