Home sale exclusion rules: What’s the reason for the home sale?

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in Small Business Tax,Small Business Tax Deduction Strategies

Q. We moved a year ago to be closer to our daughter and grandkids. But now she is relocating because of her job. If we move again, do we qualify for any home sale exclusion? K.P., Sedona, Ariz.

A. No. Usually, the home sale exclusion is available only if you’ve owned and used the home as your principal residence for at least two out of the last five years. A partial exclusion may be claimed if you fail to meet the two-year rule due to a change of employment, health issues or other unforeseen circumstances. But this exception doesn’t apply if some other person, like your daughter, changes her employment.

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