asked

I am looking to understand if I am eligible for (all or part of) the $500K tax exemption on gains from a home sale. We are selling our house, which we bought on 6/30/20 for $888,000, and expect to sell it for $1,500,000. We spent $75K on home improvements. We are aware of the tax implications and ideally want to close on our sale after 6/30/22. However, we want to understand the tax penalty if we close before 6/30/22. Additionally, does it matter how much of our proceeds we roll directly into our next purchase, and if my wife getting a job in a far-away city would qualify as an unforeseen circumstance to allow pro-rating of the tax?

February 2nd, 2024

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