Capital gains exclusion- work related

Forum|Forum|3 years ago
April 5, 2023
2 replies
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Hello. My question is regarding"took a new job" and need to sell my home. I am under 2 years, (19 months) on my primary and relocating due to my new job is 70 miles away. Can I go ahead and move (rent) at my new location while I am actively listing my home to sell? As it seems impossible to make a 75 mile one way to my job each day until my home sells. I want to get settled in my new town and get my employer updated ID's and addresses. I will of course be making weekly trips back to my home for upkeep purposes, yard work as such and will leave all the utilities on. Actually the home will remain furnished , I will just be taking my clothes and personal necessities to my new apartment. I know I can take the work exemption if we close before 24 months but do I actually have to be living in the home until it sells?

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Mike9241

Level 15

the job-related move will qualify you for a partial exclusion if the new place of employment is at least 50 miles farther from the old home than the former place of employment was. the partial exclusion is based on the lesser of days (months) occupied as principal residence or days (months) owned

brhayne2Author

Level 2

So if I occupy the home for 10 months and own it for 19 months then I would get the partial exclusion on the 10 months I actually live in the home, correct?

I will only be walking away with around 30.000 after the sell, so would I even need to worry about capaital gains at all?

JohnB5677

Level 15

From what you've said you do qualify for a partial exclusion. Please see: Publication 523 Work-Related Move

Both @Mike9241 and @ThomasM125 are correct. To calculate the partial exclusion, you will use the 10-month period that you lived in the house before you got the new job.

Simply enter your information into TurboTax, or you can use this link to calculate the exclusion. Worksheet 1. Find Your Exclusion Limit Section B

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ThomasM125

Level 15

Your primary residence is where you live most of the time, unless you are away temporarily, meaning you intend to move back home in the near future. Since you are relocating for a new job and therefore living most of the time and working in another location, your home that you left would no longer be considered your primary residence.

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