The National Directory of Certified Public Accountants

Ask A CPA - Residence - My Home

Relocation - Partial Exclusion

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.

If you need professional help with "Residence - My Home" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.