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Subject:  Re: Does home sale exclusion apply to me? Date:  5/3/2000  10:59 PM
Author:  TMFTaxes Number:  35343 of 127753

<<We purchased our home on in August of '97. I took a job in another state *almost* two years later, and we moved in May of 99. Rather than sell the home (we figured we would return after a few years) we rented the house out (at a significant loss. Just enough to cover our new lower living expenses, rather than the old mortgage) to family.

Well, the family members are now moving on, and rather than go through the trouble of renting the place out, we've decided to sell. (Side note: No, I haven't been promoted to putting the almonds on the cookies. We've decided that the house itself is not a keeper.) What I'm wondering is that since we passed the test and the house never became a rental properly, do we qualify for a partial exclusion due to the employment change?>>

I must admit, this is the first question of this type that I have been asked. It's pretty interesting. But if you read the code and regs literally, it appears that you qualify for a reduced exclusion. You've met all of the qualifications, AND the move was job related.

And, as Peter points out, it also meets with the SPIRIT of the law. You moved because of a change of employment. You otherwise meet the qualifications. Nothing in the law says that you MUST sell immediately after accepting the employment. So, as Peter points out, the reduced exclusion should be available.

Not much question in my mind.

TMF Taxes

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