Partial exclusion for primary home sales

[khunsandy]

Client changed job from in office to full-time remote and moved from Kansas to Florida. She lives in her house less than two years. Since, the job is full-time remote and its location is in another state, is it possible to claim partial home sales exclusion in this scenario? 

[IRonMaN]

Based on your limited information, it sounds like the employee moved to her living room which doesn't really sound like a change in workplace location since she already had a living room to work from.

[qbteachmt]

Did you read what the IRS tells you applies:

https://www.irs.gov/publications/p523

"Work-Related Move

You meet the requirements for a partial exclusion if any of the following events occurred during your time of ownership and residence in the home.

• You took or were transferred to 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 his or her residence."

There are some other exceptions in that Pub. You should read them.

[khunsandy]

Yes, that's what I read and I wanted to confirm anyway as I don't want to not doing it right for my client if I interpret it incorrectly. 

[itonewbie · Accepted solution]

I vote no also.

The IRS has a long-standing position about telecommuting from the days we saw the world in black and white instead of technicolor.

Tax home is where the employer would have the employee work under normal circumstances and away from home expenses would be disallowed if the employee chooses to operate from elsewhere even though it's with the permission of the employer.

In the same light, I don't see how you can argue that the move from KS to FL was employment-related.

[khunsandy]

Thank you very much.