Deductions & credits

Sorry ... I read the 2020 as 2002 ... so you may be allowed a partial exclusion if you cannot push the closing back to the 2 year mark. 

 

 

There are exceptions, for "unforeseen circumstances",  to meeting the two year rule, to qualify for a reduced maximum home sale exclusion (just being able to live cheaper would not qualify). 

  • a change in your place of employment
  • health problems that require you to move, or
  • circumstances you didn't foresee when you bought the home that force you to sell it. For example, a death in the family, losing your job and qualifying for unemployment, not being able to afford the house anymore because of a change in employment or marital status, a natural disaster that destroys your house, or you or your spouse have twins or another multiple birth.

References:

http://www.nolo.com/legal-encyclopedia/the-partial-home-sale-tax-exclusion-irs-approved-unforeseen-c...

https://www.law.cornell.edu/uscode/text/26/121

http://www.nolo.com/legal-encyclopedia/qualifying-the-home-sale-exclusion-without-living-in-the-home...