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- Feb 4, 2017
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Hi all,
I've searched for a while for an answer to my question, but all the examples I found seem to fall short. So I'm unclear as to whether my friend qualifies for the reduced capital gains exclusion on the home sale.
Here is the situation:
- Owned and occupied condo in CA from 10/2012 to 2/2014 (approx 16 mo.), laid off from preschool1 in 6/2013, left preschool2 in 12/2013
- Decided to open family child care, begun planning 12/2013
- Bought house 8 miles away for child care, moved in 2/2014
- Began renting condo as investment property in 2/2014
- Completed planning and started care operations 8/2014
- Sold condo 6/2016 (less than 5 years from purchase) Didn't want to sell earlier in case preschool did not pan out, and condo was better location for husband and his work, close to church, was trying to have baby.
Does she qualify for reduced exclusion based on change of employment because of living in the condo when change of employment took place?
From what I understand she would be eligible for an partial exclusion for the time before turning it into a rental property. The thing that worries me is that some time passed before the condo was sold, but there was no way they would have bet the cow on the business before it panned out. A little unclear about this rule.
I appreciate any feedback you could give me.
Thanks.
-Struggling
I've searched for a while for an answer to my question, but all the examples I found seem to fall short. So I'm unclear as to whether my friend qualifies for the reduced capital gains exclusion on the home sale.
Here is the situation:
- Owned and occupied condo in CA from 10/2012 to 2/2014 (approx 16 mo.), laid off from preschool1 in 6/2013, left preschool2 in 12/2013
- Decided to open family child care, begun planning 12/2013
- Bought house 8 miles away for child care, moved in 2/2014
- Began renting condo as investment property in 2/2014
- Completed planning and started care operations 8/2014
- Sold condo 6/2016 (less than 5 years from purchase) Didn't want to sell earlier in case preschool did not pan out, and condo was better location for husband and his work, close to church, was trying to have baby.
Does she qualify for reduced exclusion based on change of employment because of living in the condo when change of employment took place?
From what I understand she would be eligible for an partial exclusion for the time before turning it into a rental property. The thing that worries me is that some time passed before the condo was sold, but there was no way they would have bet the cow on the business before it panned out. A little unclear about this rule.
I appreciate any feedback you could give me.
Thanks.
-Struggling