HollyP
Employee Tax Expert

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@Carl is correct, this will not likely qualify as an unforeseen event. The Treasury Regulations state, "a sale or exchange by reason of unforeseen circumstances...does not qualify for the reduced maximum exclusion if the primary reason for the sale of exchange is a preference for a different residence or an improvement in financial circumstances." See TR § 1.121-3 here for more info. It sounds like the main reason that you want to sell the home is because your family would prefer a lawn without weeds. The question then becomes whether the IRS will consider having weeds on your property to be an unforeseen circumstance or if it will instead consider that to be a preference. 

 

The IRS may take into consideration the factors below to determine if the facts and circumstances rise to the level of an unforeseen event. See Pub 523 for more info.

  • 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.

  • You couldn’t have reasonably anticipated the situation when you bought the home.

  • You began to experience significant financial difficulty maintaining the home.

  • The home became significantly less suitable as a main home for you and your family for a specific reason.

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