Does anyone have any experience with tax laws regarding real estate in the state of Illinois?

Question

I have moved between 2 locations within 2 years of purchasing a home at the first location. I am aware that in order to avoid capital gains on the profit of the first home, my workplace has to be >50 miles from the previous workplace in order to qualify for the "safe harbor" modification to the capital gains law. I have done so and have moved into our new home (work 52 miles from original work and home is 50 miles from original home). I am currently in the position where I can improve my employment situation. However, it would require me to take another job at a location 30 miles further, for a total of 82 miles from the initial job. I am in the 21st month of the 24 necessary to avoid capital gains, but I don't want to pass up this opportunity. Any insight anyone can provide (e.g. website) would be greatly apprecaited. Thank you in advance!

I am not planning on moving my residence. Just my place of employment.

Answer 1

If you took the exclusion from gain (it has nothing to do with distance moved) within 2 years you cannot take it again. The "safe harbor" rule only applies if you lived in a home for less than 2 years and have not used the exclusion within 2 years and are moving due to a job change. In that situation you can get a pro-rata share of the exclusion.

If you are selling another home and are in month 21 and will not have used the exclusion within 2 years as of the date of it's sale, you only have 3 months to go. In today's market, you'll be lucky to find a buyer and close in less than 3 months anyway but if you want the full exclusion you'll have to delay for the full 24 months and remain living in the home.

If you're not selling your residence, what is the question? A change of employment won't have any affect at all.