exoneration of capital gains tax on sale of home for job move

Yes, if the sale of your home was related to a new job, you may be able to exclude the gain, even if you don't meet the requirements based on living in the home for two years.

In general, you can exclude up to $250,000 ($500,000 for MFJ) of gain on the sale of your home if:

• You owned and lived in the home more than two years of the five years before the sale.
• Your spouse, or other co-owner of the home, owned and lived in the home more than two years of the five years before the sale.

If you ever took depreciation on your home for home office deduction or rental use, you have to recapture that depreciation. 

If you don't meet the requirements of owning and living in the home for two of five year before the sale, you may qualify for a partial exclusion if:

• You took or a new job in a work location at least 50 miles farther from the home than your old work location. For example, your old work location was 15 miles from the home and your new work location is 65 miles from the home.
• You had no previous work location and you began a new job at least 50 miles from the home.
• Either of the above is true of your spouse, a co-owner of the home, or anyone else for whom the home was her or his residence.

TurboTax can help you determine if you qualify for the full or partial exclusion. Here's how to find that section:

1. Sign in to your TurboTax account.
2. Select Edit under Wages & Income. 
3. Scroll down to Less Common Income at the bottom. Expand the section by selecting the down arrow. 
4. Select Start to the right of Sale of Home (gain or loss).
5. Answer the first question Yes and continue answering according to your situation.