My spouse and I sold our home in July 2021 after living there for 3 years, so will not have to pay capital gains tax as we made less than $100,000- profit. We purchased a new home in July 2021 and now may be moving out of state to take another job. If we take the new job offer, we would be moving around July 2022 and hopefully selling our house around that time. Do not know if we will have capital gains on the home as we have lived in it for such a short time, although we have been doing quite a bit of remodeling. If we do have capital gains, my understanding is that even though we just took the capital gains exclusion in 2021, we can still take a partial exclusion in 2022 because we are selling it due to a job related move. I am basing it on publication 523 that I found on the IRS website. Does this sound correct?
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It does sound correct. See below.
IRS Publication 523 page 6
Does your home qualify for a partial exclusion of gain?
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.
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