
Selling Primary and Moving For Work.
I am selling my primary and moving. If I'm moving for work, am I exempt from capital gains tax? I haven't lived in the house for 2yrs yet.

@Natalie Kolodij @Linda Weygant @Brandon Hall
I don't think you are. But they ^^^^ would know better :)

Partial exclusion- prorated based on the time you did live there if you meet some requirements (See below)
For example: If you're single normally $250k tax- free. If you lived in it only 1 year...you'll qualify for up to $125k tax free.
Work-Related MoveYou 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.

@Natalie Kolodij ok. So I'm moving 150 miles away for new employment. I've lived in the house for 1yr 5mo. Meaning I would qualify for partial exclusion.. right? What is partial exclusion? And what exactly is getting taxed? The whole sell price, or.. ? Also how do I know what % the cap gains tax is at.
Alot of questions.. I know. I'm just trying to get a full grasp on this. I really appreciate your input so far. Very helpful ๐

The "partial exclusion" would be about 75% of whatever amount you'd normally qualify for. So 75% of either 250k or 500k depending on single or married.
Tax will be on the gain which will be your selling price - selling expenses - purchase price- purchase expenses- any improvements made to the house.
But unless that gain is over $200k you should likely be fine and not owe any tax.

@Natalie Kolodij single. And yes, the gain will be well below 200k. This is good news. How does this all take place? Will they know at the title company that there wont be any tax. How does that process work. I've never sold a home before. I dont know at what step ln the process tax gets paid (if any) and will there be a responsible party to handle that info?

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"will there be a responsible party to handle that info"
Yes, you will be the responsible party to handle that info. ; )
If a 1099-S is issued for the sale, you should accurately report the sale and claim any applicable exclusion on your tax return. If you're not comfortable with the dynamics, it might help to hire a tax pro.

@Eamonn McElroy right. So if any tax are due, they dont come out of the proceeds? I pay them at the end of the year?

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If any taxes are due, you calculate the liability on your tax return, then you compare that to any taxes withheld at the time of sale, if any.

@Eamonn McElroy Thank you๐

Thank you all for your input๐