Hello All,
i soooo want to help my client claim the exclusion on the gain from the sale of her home but it just doesn't seem that it will be possible.... Can anybody see a way?
Timeline
Jan. 2010 - taxpayer buys house in California
Jan, 2011 - taxpayer starts working and living overseas (Dubai)
Jan, 2011-Jan 2015 - taxpayer's dependents living in CA home while taxpayer lives/works in Dubai
Jan, 2015 - house is rented
Jan, 2018 - tenants vacate, taxpayer's dependents return to house to ready it for sale
April 2018 home is sold
1st line of reasoning: Can taxpayer claim (partial or full) exclusion if only dependents are living in home while she lives overseas?
2nd line of reasoning: If a job change is an exception to the 2 out of 5 rule, can this taxpayer claim the exclusion given that she was out of the house seven years before the house was sold?
thanks,
deb