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Deductions & credits
Yes, according IRS Publication 523 the situation you describe would fall under other unforeseen circumstances leading to a partial exclusion of gain on the sale of your main home. Below is an extract to review.
"Even if your situation doesn’t match any of the standard requirements described above, you still may qualify for an exception. You may qualify if you can demonstrate the primary reason for sale, based on facts and circumstances, is work related, health related, or unforeseeable. Important factors are:
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The situation causing the sale arose during the time you owned and used your property as your residence.
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You sold your home not long after the situation arose.
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You couldn’t have reasonably anticipated the situation when you bought the home.
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You began to experience significant financial difficulty maintaining the home.
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The home became significantly less suitable as a main home for you and your family for a specific reason."
In the "Wages and Income" tab, the "Less Common Income" topic, you will find the "Sale of Home" interview. In that interview you will be able to select "Other unforeseen circumstances" to qualify for a partial exclusion. TurboTax will calculate the exclusion based on your entries for dates etc.
Be sure to keep good records of the situation in your tax files.
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