Selling primary home in 14 months of purchase due to work location change

[ssanand17]

Hi , I am selling my primary home in 14 months of my purchase due to change in work location to another state, Will I get a tax exemption for the capital gains in this situation? My gains would be around $300K.

Note: I sold my previous primary home in 2022 after living the for 5 years.

Thank You!

[MayaD]

You don't qualify for the exclusion.

You're eligible for the exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale.

Generally, you're not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home. 

For more information check Sale of your home

[ssanand17]

Hi,

Thank You for the response! As per IRA P523 partial exclusion I may be eligible for capital gain exclusion.

2022 Publication 523 (irs.gov)

Can you please confirm my understanding.

Thank You!

Anand

[Vanessa A]

It is possible that you will qualify for a partial exclusion since you are moving due to change in place of employment greater than 50  miles away.   If you want to know the exact amount that would be excluded you can do a "dummy return" entering all of your information and your sale date and the specifics of your sale to determine how much you will actually have to pay capital gains taxes on.