We will be moving 500 miles away and I will be starting a new job. According to pub 523 we are eligible for a partial exclusion of the gain on our home.
I am close to retirement age, and want to know if there is a TIME REQUIREMENT that I must work at the new job to use this exclusion? If I only work at the new job for a few months, would the exclusion be tossed out?
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There is not time requirement; however, if you were to move to the beach, work at your new job for two weeks and retire, the IRS might determine that you did not move due to a change in employment. On the other hand, if you were to move, work for a year and decide it was time to retire, there would be no basis on which to question your move. As long as you could show good faith, you should be OK.
Not moving to the beach, just another state. (Montana to Idaho). I’m 6 months from retirement.
You should be fine. It is very unlikely the IRS would look into the situation, and if they did, you would qualify for the exclusion based on their criteria.
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