I have an unusual situation. 3 years ago I had to move from my home because of a job change. I had lived in the home approximately 15 months. I still have not sold the home as it is more of a commercial area and should bring a good price. I moved and built anothe home that took 18 months to build. My companies business took a downturn and I lost my job. I found another job and had to move again. The second house sold after I owned it for only 3 or 4 months. I made money on the second house but probably only 1/4 make on the original house.Here is my question. Given the exclusion of taxes for living in ahome 2 years and selling and the clause that pro rates the exclusion if you have to move because of a job change. What should I do? Do I take the exclusion on the second house and risk the larger profits of the first? Am I entitled to exclusion on both?
See IRS Publication 523 "Selling Your Home". Worksheet 3 on page 13 helps you figure the exclusion amount that you can claim if you sell two homes within a two year period and both homes fail the two-year use test because of a change in place of empoyment. DavidP
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