@jsbr5000 wrote:
I just read up on the exclusion part of the article. My fiance and I are separating and that is the reason the home is being listed. Since she is not a spouse, can this still be considered an unforeseeable event? If I can use that, that would be the best way to go. Thank you.
There are several "safe harbor" situations, which are called that because if you meet the conditions, your claim won't be questioned. (Your situation does not fit any of the safe harbors because you aren't married.) There is also the general "other facts and circumstances" condition. You would have to show that the separation was not something that you would reasonably anticipate when you bought the home, and the separation caused a significant financial difficulty in remaining in that home, forcing you to sell early.
For example, if you were not dating when you bought the home, then you could afford the house on your own, and your partner moving out is not really causing you a hardship. On the other hand, if you moved in together and your partner always paid half the mortgage and you can't afford it on your own, then the separation is causing a hardship that is forcing you to sell, even if your partner is not a co-owner. On the other-other hand, if you next buy a more expensive home on your own, you undercut the argument that you were forced to sell early due to an unforeseeable hardship. If you are selling for preference, rather than financial hardship, you don't qualify, and should just wait the full 2 years or pay the tax.
It depends on the facts and circumstances of your particular case, and only you can make that judgement call.
