I have only lived in my present residence for 1.5 years. I am moving to another state to take a new job by my own choice. I heard there is a moving exception in this situation. True?
2006-09-20 09:24:58 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
There does appear to be an exception for moving for employment reasons. The IRS link below should help.
If you did not meet the ownership and use tests, or if during the two–year period ending on the date of the sale or exchange you sold or exchanged another home at a gain and excluded all or part of that gain, you may be allowed to exclude the gain realized on the sale or exchange of your home if:
* You sold or exchanged your home due to a change in place of employment or health or unforeseen circumstances.
2006-09-20 12:48:08 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
Usually you have to own a home for 2 out of the last 5 years in order not to pay. Talk to your accountant.
2006-09-20 16:35:16 · answer #2 · answered by Kathleen M 4 · 0⤊ 1⤋
2 years is the limit for cap gains. I highly recommend talking to your employer about a moving bonus to cover your cap gain liability
2006-09-20 16:28:19 · answer #3 · answered by Robin A. 3 · 0⤊ 2⤋
If you buy a house that costs more than the one you sold, you automatically defer the capital gains.
2006-09-20 16:36:30 · answer #4 · answered by regerugged 7 · 0⤊ 4⤋