Deductions & credits

You will have to report the sale since you did not own and live in the home for at least two years during the 5 year period on the date of sale.  However, you would be able to use a partial capital gain exclusion due to unforeseen circumstances such as the loss of your job.

 

Go to IRS Publication 523, Sale of Home page 6 - https://www.irs.gov/pub/irs-pdf/p523.pdf#page=6

 

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Sale of Home (gain or loss), click the start or update button


Or enter sale of home in the Search box located in the upper right of the program screen. Click on Jump to sale of home

 

Gain or Loss on the sale of a personal residence = Selling Price minus Sales Expenses minus Adjusted Basis of the home (Purchase price plus the cost of any improvements to the home prior to the sale)