Wife and I bought our first home in FL approximately 13 months ago. Obviously originally I thought we’d be here 5-7 years, but after conversing with some friends up north I’ve got a job offer that I’d be insane to refuse. The only complication is our current home. I tried searching through the history in r/RealEstate but didn’t find any posts that seemed relevant (I blame the reddit search functions).

Based on my own current estimates we’d be coming away with somewhere between 80-100k from equity gained during this time (absolutely insane but seems backed up by comps). From IRS Guidance on capital gains on home sales it looks like we would qualify for a job exclusion. Applying their guidance, if I’m reading it right we prorate 500k with 13/24 (# mos lived here / 24) to get a $270k limit that we can deduct from the home sale.

Am I doing this properly? Or is it the tax we’d owe that becomes prorated? I.e. if it’s a 15% tax on 100k profit, we’d have 15k * (13/24) = 8125 in credit against the 15k taxes owed?

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