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  • capital gains question

    Seeking some reassurance if anyone is familiar with this situation. Currently selling my home due to Army PCS orders. Will have owned it and lived in it as primary residence for 2 years as of June 25, but it is likely that we will close on the sale before then.

    I'm wondering A) if Army orders exempt us from the capital gains tax and B) if not, is it pro-rated so that selling shortly before 2 years makes the tax somewhat negligible?

    Thanks a lot for any knowledge that my searching has failed to definitively answer.




  • #2
    i believe you can use a partial exclusion for job-related move (has nothing to do with the military). There is a box with a calculation.
    https://www.irs.gov/publications/p52...blink100073097 Does Your Home Qualify for a Partial Exclusion of Gain?


    If you don't meet the Eligibility Test, you may still qualify for a partial exclusion of gain. You can meet the requirements for a partial exclusion if the main reason for your home sale was a change in workplace location, a health issue, or an unforeseeable event. Work-Related Move


    You meet the requirements for a partial exclusion if any of the following events occurred during your time of ownership and residence in the home.
    • You took or were transferred to a new job in a work location at least 50 miles farther from the home than your old work location. For example, your old work location was 15 miles from the home and your new work location is 65 miles from the home.
    • You had no previous work location and you began a new job at least 50 miles from the 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.
    ‚Äč

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    • #3
      Thank you this was just what I needed!

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