Determining eligibility for a Partial Exclusion of Gain

[Dylan Baxter]

My wife and I have lived in our current home since 12/15/2020. I bought the house before we were married, but she has lived with me since day one, which is documented on the insurance policy. She is a physical therapist, and starting in March, we are planning on beginning travel therapy. Travel therapy is where she will work with different travel agencies and accept 8-50 week contracts around the country, with the most common being 13 weeks. During this time, I will transition to a full-time online student. Additionally, we plan to change our primary residence to her parent's home, and she will work down there for her first contract to establish a new primary residence.

Based on the phrasing of publication 523, I think we should be eligible for partial exclusion from capital gains. We plan on selling the home to fund our purchase of an RV and potential tow vehicle, so we are not paying for Airbnb's around the country. As of the current market, we should sell the house for about 70k more than we purchased it for. Should we expect to have any issues being excluded from the capital gains?

For awareness, here is a timeline for my wife and me and a copy of the IRS website's verbiage.

• 12/15/20 - Purchased and moved into current property 
• 8/1/21 - Marred 
• 3/15/22 - List home for sale

From IRS website https://www.irs.gov/publicatio...

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.

• 1) 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.
• 2) You had no previous work location and you began a new job at least 50 miles from the home.
• 3) 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.