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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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Due to loss of employment (I am eligible )

Customer Question

Due to loss of employment (I am eligible for unemployment) I am forced to sell my rental home, (I have NOT lived in it for 2 of the past 5 years). According to IRS publication 523 page 4 “Unforseeable events” item #4 “became eligible for unemployment compensation” and item #5 “became unable because of a change in employment status to pay basic living expenses….” There may be an exception or partial exception… however does that include rental property?
And if so using California form 593-C under Part II and or part III which box do I check to get the full or partial exemption
Submitted: 6 months ago.
Category: Tax
Expert:  Lev replied 6 months ago.
IRS publication 523 is ONLY related to primary residence.It doesn't apply to rental properties.
Expert:  Lev replied 6 months ago.
If you don't meet the eligibility test, you may still qualify for partial exclusion if you moved because of work, health, or an unforeseeable event.You can qualify either by meeting a set of standard requirements (the “safe harbor” provisions) or by showing enough facts and circumstances to validate your claim.If your circumstances do not match any of the standard requirements described above but based on facts and circumstances the primary reason for sale is work-related, health-related, or unforeseeable.Important factors are:The situation causing the sale arose during the time you owned and used your property as your residence.You sold your home not long after the situation arose.Questions?

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