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Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
How are you today?
First off, I am so sorry to hear about your wife's condition.
However, since you are moving because of medical reasons you can exclude up to 19/24 of $500,000
You would just need to show that you are moving due to medical reasons
how do I show that?
what do I need?
Well all you would need is your wife's medical records
and you don't need that unless you are selected for audit
so on my tax return do I mention the gain?
no, you would not - unless your gain was more than your allowed exclusion
which it will be.
if it's $200,000
You made a good investment in that home, if it appreciated that much in 19 months!
but wouldn't my exclusion be 395K based on 19/24. Did I misunderstand that?
I was assuming your gain is $200,000
which is under 19/24 of $500,000
o.k. so I will not have to mention the gain on my tax return because it will be under the 19/24 of 500K. All I need is my wife's medical records as proof if I'm audited
That is correct
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nope that's it, thank you for your help.