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taxstuff
Level 2

Sell house two years exception

If we sell our primary residence in less than two years living in it, and if my spouse get a job at where we will move to, can we get partial exclusion even if my spouse has never had any job previously?  Also, can the job be 1099 or does it have to be W-2? And does the job require a minimum earning amount?  Thank you.

2 Best answer

Accepted Solutions
tagteam
Level 15

Sell house two years exception

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 location at least 50 miles farther from the home than your old work location. For example, your old work location was 15 miles from the home and your new work location is 65 miles from the home.

  • You had no previous work location and you began a new job at least 50 miles from the home.

  • Either of the above is true of your spouse, a co-owner of the home, or anyone else for whom the home was his or her residence.

View solution in original post

tagteam
Level 15

Sell house two years exception

@taxstuff 

 

In short, no. Read through Section 1.121-3(c) at the link below.

 

https://www.law.cornell.edu/cfr/text/26/1.121-3

View solution in original post

4 Replies
Critter-3
Level 15

Sell house two years exception

Under certain circumstances, you may be able to avoid paying taxes if you lived there less than 2 years.  The most common is moving due to relocating for work, but see Publication 523 for details:

https://www.irs.gov/publications/p523#en_US_2017_publink100073096 

tagteam
Level 15

Sell house two years exception

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 location at least 50 miles farther from the home than your old work location. For example, your old work location was 15 miles from the home and your new work location is 65 miles from the home.

  • You had no previous work location and you began a new job at least 50 miles from the home.

  • Either of the above is true of your spouse, a co-owner of the home, or anyone else for whom the home was his or her residence.

taxstuff
Level 2

Sell house two years exception

Thank you for the answer. Also, is there any specific requirement for the new job, such as the type of job, part time / full time,  independent contractor / employee, minimum salary, etc.?  Thank you.

tagteam
Level 15

Sell house two years exception

@taxstuff 

 

In short, no. Read through Section 1.121-3(c) at the link below.

 

https://www.law.cornell.edu/cfr/text/26/1.121-3

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