Selling primary home within 2 years due to job change

[kullfee]

Following these articles: 

https://turbotax.intuit.com/tax-tips/jobs-and-career/changing-jobs/L5ElUIrh6

https://www.irs.gov/publications/p523#en_US_2021_publink100073096

My situation is that I got a new job with the same company through internal transfer but will have to move to different state permanently. I need to sell my primary residence before I move as I don't think I would be able to maintain it. I lived in home for ~18 months with my family and may make some gains from the sale. I believe I need to pay capital gains but want to know if I would qualify to get reduced (partial) exclusion? IRS says that you can but want to be sure that it won't be considered as an investment property since I am selling it within 2 years. If I do qualify then what record keeping is needed for next year during tax filing to explain the scenario to IRS?

Your comment is appreciated!

[ColeenD3]

Yes, you qualify for a partial exclusion. The fact that you moved for a new job is sufficient. You can always get a letter from your employer at any time if needed.

Partial Exclusion May Be Available

If you don't meet the eligibility test, you may still qualify for a partial exclusion of gain if you moved because of work, health, or an unforeseeable event. You can qualify either by meeting a set of standard requirements (the “safe harbor” provisions) or by showing enough facts and circumstances to validate your claim.

Work-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 his or her residence

[kullfee]

I have a follow up question. Does sequence of events matter to qualify for the partial exclusion? What if I need to serve 4-5 weeks of notice period before taking up the new job at new location and my house is sold before that move? It's possible due to the current market conditions so want to confirm if that would matter by any means.

Appreciate your response!

[MarilynG]

That's ok.  If you need to have a temporary residence before moving, that is not a problem.  

You are selling your home due to a job move, and that's the reason you will indicate in TurboTax to qualify for the home sale partial exclusion as outlined by @ColeenD3 above.