Temporary move abroad affects home-sale tax break

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

DEAR BOB: My son and I have owned our home where we have lived together since June 2006. It has been our plan to sell it in July 2008 and make a nice profit so each of us can take advantage of the $250,000 home-sale tax exemption. However, his employer might send him to Afghanistan for a full year in January 2007. How will that affect our plan to sell in 2008? --Mr. J.M. DEAR MR. J.M.: As you probably know, Internal Revenue Code 121 provides a principal-residence home-sale tax exemption up to $250,000 if you own and occupy your home at least 24 of the last 60 months before its sale. Purchase Bob Bruss reports online. When your son moves out in January 2007 for a long-term job in Afghanistan, he will lose his full eligibility for his $250,000 exemption. Of course, you will retain your full eligibility if you stay in the house as your principal residence for the required time. If you and he proceed with the plan to sell the house in June 2008, your capital gain up to $250,000 will b...