Relocation - Partial Exclusion
Answer:
For certain designated reasons such as job relocation, illness or other unforeseeable events, you can qualify for a partial exclusion.
The calculation of the exclusion is basically the number of months you lived in the house divided by 24 times the exclusion.
If married the total un-prorated exclusion is $500,000 if not married the total un-prorated exclusion is $250,000.
Therefore, if you are married and lived in the house for 1 year (12 months) then 12/24 x $500,000 = $250,000 exemption on the sale of your primary residence.
The calculation of the exclusion is basically the number of months you lived in the house divided by 24 times the exclusion.
If married the total un-prorated exclusion is $500,000 if not married the total un-prorated exclusion is $250,000.
Therefore, if you are married and lived in the house for 1 year (12 months) then 12/24 x $500,000 = $250,000 exemption on the sale of your primary residence.
