Home Sale Exclusion

Hi All -
I got an inquiry about the home sale exclusion. This person left his primary residence 3.5 years ago for a new job in another location - more than 50 miles away. Based on Publication 523 it looks like he's eligible for a partial exclusion.
But I couldn't find details on that, and in particular how to calculate the partial exclusion. I assume that it will the number of months he lived there in the last five years over 24, but that's not specified in Publication 523, and I couldn't easily find it in any place authoritative.
Am I wrong?
Thanks.
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Stu 
http://DownToEarthLawyer.com
Reply to
Stuart O. Bronstein
Use Worksheet 1 in Pub. 523. It's on page 7 of the 2018 edition. (The 2019 edition isn't available yet.) Section B of Worksheet 1 calculates the partial exclusion. It says you can use days or months.
Bob Sandler
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Reply to
Bob Sandler

Thanks Bob. I was afraid they might deny a hardship exemption to someone who didn't bother to sell the home they moved out of more than three years earlier. But it looks like a mechanical calculation simply based on the numbers.
Just what I needed to know.
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Stu 
http://DownToEarthLawyer.com
Reply to
Stuart O. Bronstein

Small technical point: It is not more than 50 miles away. It is at least 50 miles farther away than the current commute. As the example shows in Pub 523, if you were already commuting 15 miles, then the new job would have to be at least a 65 mile commute.
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Reply to
Alan

Right, that's what Pub 523 days, and you're right, it's a bit more complicated than just 50 miles away. The regulation is a bit more complicated still. It says that the partial exclusion is available when:
"The qualified individual's new place of employment is at least 50 miles farther from the residence sold or exchanged than was the former place of employment, or, if there was no former place of employment, the distance between the qualified individual's new place of employment and the residence sold or exchanged is at least 50 miles.
Treas. Reg ?1.121-3(c)(2)(ii)
So if the former commute was 15 miles, the new place of employment would have to be at least 65 miles away from the former house. It's about distance from the house that was sold rather than the current commute.
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Stu 
http://DownToEarthLawyer.com
Reply to
Stuart O. Bronstein

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