home capital gains - unforeseen circumstance
My girlfriend and I own a house together, and are now splitting up
and selling the house before we have owned it for 2 years. I've looked
around and found that capital gains can still be avoided from selling
a home before 2 years if it qualifies as one of the following 6
"unforeseen circumstances"
* divorce or legal separation,
* becoming eligible for unemployment compensation,
* a change in employment that leaves the taxpayer unable
to pay the mortgage or reasonable basic living expenses,
* multiple births resulting from the same pregnancy,
* damage to the residence resulting from a natural or
man-made disaster, or an act of war or terrorism, and
* condemnation, seizure or other involuntary conversion
of the property.
I was wondering if a BF/GF split up might be considered an unforeseen
circumstance by the IRS so that we can avoid the tax??
Since I don't live in a common law state, I don't think it could be
considered a legal separation.
-Sorry, but no. Your situation isn't an unforeseen circumstance that gives
rise to a partial gain exclusion.
Both you and her will owe tax on any gains.
-Can either one of you afford to continue paying for the house by himself or
her