All Forum Posts by: Carolyn Lin

I'm during the process of selling my current home to buy a bigger house, the seller of the new home already accepted my contingent offer, and I also accepted an offer from a buyer for my current home. However, if I successfully switch the house, the living period of my current home will be six days short of two years, which means I'm not qualify for tax exemption.

I tried my best to defer the closing date with the seller, but the seller refused to do so due to some personal reason. So I'm wondering if I qualify for partially tax exclusion? The reason why I want to switch the house is because I live with my sister who is pregnant, she's gonna become a single mom with no job, both she and her child will be dependent on me. So I need the bigger house and better school district to support my family. 

Here are some information I found from IRS website:

https://www.irs.gov/publications/p523/ar02.html

Does Your Home Qualify—Details and Exceptions

Showing facts and circumstances. If your circumstances do not match any of the standard requirements described above but based on facts and circumstances the primary reason for sale is work-related, health-related, or unforeseeable. Important factors are:

• The situation causing the sale arose during the time you owned and used your property as your residence.
• You sold your home not long after the situation arose.
• You could not have reasonably anticipated the situation when you bought the home.
• You began to experience significant financial difficulty maintaining the home.
• The home became significantly less suitable as a main home for you and your family for a specific reason.

I wonder if my situation qualify for these factors? I've asked a lot of my friends/ co-workers who are CPAs, but none of them can give me an affirmative answer. I really need helps from professionals here, most of my money will go to my family and my new home, paying tax from the capital gain will make my financial situation worst...... Please help!