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Level 1

If I sell my home because I got a new job and needed to move closer will I have to pay capital gains? I have lived in my primary address for 18 months

 
3 Replies
Level 1

If I sell my home because I got a new job and needed to move closer will I have to pay capital gains? I have lived in my primary address for 18 months

Generally, a homeowner must own and live in the home for two out of the last five years to qualify for the $250,000 ($500,000 if filing a joint return) exclusion for capital gain on the sale of a primary residence.  However, there is an exception to the two-year rule for tax payers who sold early for a job-related move.  You meet the standard requirements if any of the following happened during the time you owned and lived in the home you sold:

  • You took or were transferred to a new job in a work location at least 50 miles farther from home than your old work location.
  • You had no previous work location and you began a new job at least 50 miles from home.
  • Either of the above is true of your spouse, a co-owner of the home, or anyone else for whom the home was their residence.

If you meet this and the other requirements for the capital gains exclusion, you're entitled to a percentage (in your case, 75%) of the exclusion amount.

Please follow this link for more information.  https://www.irs.gov/uac/about-publication-523

Level 3

If I sell my home because I got a new job and needed to move closer will I have to pay capital gains? I have lived in my primary address for 18 months

Could you please confirm this is the case also for US citizens living abroad and selling a foreign primary residence?

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Level 20

If I sell my home because I got a new job and needed to move closer will I have to pay capital gains? I have lived in my primary address for 18 months


@Davidt522 wrote:

Could you please confirm this is the case also for US citizens living abroad and selling a foreign primary residence?


Nothing in the Internal Revenue Code nor Treasury Regulations relating to the Section 121 home sale exclusion requires that your principal residence be located within the United States in order to qualify for the exclusion.