Check the home-sale exclusion against your dates
New Jersey's tax guide spells out the federal tests it follows. You must have owned the home for two of the five years before the sale, lived in it as your principal residence for two of those years, and not excluded gain on another home in the two years before. Up to $250,000 of gain can be excluded, or $500,000 on a joint return. If a job change cut your time short, the guide says a reduced exclusion may apply. Pull your purchase and move-in dates before you set a closing day.
