Well here’s some interesting perks for home sellers looking for tax breaks. No tax on up to $500k MFJ if owned over 2yrs – most of us knew that one, but did you also know:
There are several exceptions. Under the old rules, if the home has been held fewer than two years, and if the move is job-related or health-related or there were other unforeseen circumstances, the taxpayer was allowed a prorated portion of the exclusion. The IRS ruled that unforeseen circumstances could include:
- divorce, legal separation, or death of a spouse;
- becoming eligible for unemployment compensation;
- a change in employment that makes it impossible to pay the mortgage or basic living expenses;
- multiple births resulting from the same pregnancy;
- damage to the home from a natural disaster, act of war, or terrorism; and
- condemnation, seizure, or involuntary conversion of the property, such as foreclosure.