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Page 6 of 22 Fileid: … tions/p523/2022/a/xml/cycle04/source 9:00 - 12-Dec-2022
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
If you relinquished your home in a like-kind exchange, 1. Parent, grandparent, stepmother, stepfather;
then you should determine if you qualify to exclude gain
2. Child (including adopted child, eligible foster
as you would if you sold the home. Under certain circum-
child, and stepchild), grandchild;
stances, you may meet the requirements for both the ex-
clusion of gain from the exchange of a main home and the 3. Brother, sister, stepbrother, stepsister, half
nonrecognition of gain from a like-kind exchange. For brother, half sister;
more information, see Revenue Procedure 2005-14,
4. Mother-in-law, father-in-law, brother-in-law, sis-
2005-7 I.R.B. 528, available at IRS.gov/irb/
ter-in-law, son-in-law, daughter-in-law;
2005-07_IRB#RP-2005-14.
5. Uncle, aunt, nephew, or niece.
Eligibility Step 6—Final Determination of • A doctor recommended a change in residence for you
Eligibility because you were experiencing a health problem.
If you meet the ownership, residence, and look-back re- • The above is true of your spouse, a co-owner of the
quirements, taking the exceptions into account, then you home, or anyone else for whom the home was his or
meet the Eligibility Test. Your home sale qualifies for the her residence.
maximum exclusion. Skip to Worksheet 1, later.
Unforeseeable Events
If you didn’t meet the Eligibility Test, then your home
isn’t eligible for the maximum exclusion, but you should You meet the standard requirements if any of the following
continue to Does Your Home Qualify for a Partial Exclu- events occurred during the time you owned and lived in
sion of Gain. the home you sold.
• Your home was destroyed or condemned.
Does Your Home Qualify for a Partial
• Your home suffered a casualty loss because of a natu-
Exclusion of Gain? ral or man-made disaster or an act of terrorism. (It
If you don't meet the Eligibility Test, you may still qualify doesn’t matter whether the loss is deductible on your
for a partial exclusion of gain. You can meet the require- tax return.)
ments for a partial exclusion if the main reason for your • You, your spouse, a co-owner of the home, or anyone
home sale was a change in workplace location, a health else for whom the home was his or her residence:
issue, or an unforeseeable event.
1. Died;
Work-Related Move 2. Became divorced or legally separated, or were is-
sued a separate decree to pay maintenance (sup-
You meet the requirements for a partial exclusion if any of port) to the other spouse;
the following events occurred during your time of owner-
ship and residence in the home. 3. Gave birth to two or more children from the same
pregnancy;
• You took or were transferred to a new job in a work lo-
cation at least 50 miles farther from the home than 4. Became eligible for unemployment compensa-
your old work location. For example, your old work lo- tion;
cation was 15 miles from the home and your new work 5. Became unable, because of a change in employ-
location is 65 miles from the home. ment status, to pay basic living expenses for the
• You had no previous work location and you began a household (including expenses for food, clothing,
new job at least 50 miles from the home. housing, medication, transportation, taxes,
court-ordered payments, and expenses reasona-
• Either of the above is true of your spouse, a co-owner bly necessary for making an income).
of the home, or anyone else for whom the home was
his or her residence. 6. An event is determined to be an unforeseeable
event in IRS published guidance.
Health-Related Move
Other Facts and Circumstances
You meet the requirements for a partial exclusion if any of
the following health-related events occurred during your Even if your situation doesn’t match any of the standard
time of ownership and residence in the home. requirements described above, you still may qualify for an
• You moved to obtain, provide, or facilitate diagnosis, exception. You may qualify if you can demonstrate the pri-
cure, mitigation, or treatment of disease, illness, or in- mary reason for sale, based on facts and circumstances,
jury for yourself or a family member. is work related, health related, or unforeseeable. Impor-
tant factors are:
• You moved to obtain or provide medical or personal
care for a family member suffering from a disease, ill- • The situation causing the sale arose during the time
ness, or injury. A family member includes your: you owned and used your property as your residence.
Page 6 Publication 523 (2022)
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