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Deductions & credits
The Tax Code broadly defines unforeseen circumstances as those events as “that the taxpayer could not reasonably have anticipated before purchasing and occupying the residence.” This could reasonably be considered to fit your circumstance.
In addition you may meet the Health Related Move standard.
Per IRS guidance; If you don't meet the Eligibility Test, you may still qualify for a partial exclusion of gain. You can meet the requirements for a partial exclusion if the main reason for your home sale was a change in workplace location, a health issue, or an unforeseeable event.
Health-Related Move:
You meet the requirements for a partial exclusion if any of the following health-related events occurred during your time of ownership and residence in the home.
You moved to obtain, provide, or facilitate diagnosis, cure, mitigation, or treatment of disease, illness, or injury for yourself or a family member.
You moved to obtain or provide medical or personal care for a family member suffering from a disease, illness, or injury. A family member includes your:
Parent, grandparent, stepmother, stepfather;
Child (including adopted child, eligible foster child, and stepchild), grandchild;
Brother, sister, stepbrother, stepsister, half brother, half sister;
Mother-in-law, father-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law;
Uncle, aunt, nephew, or niece.
A doctor recommended a change in residence for you because you were experiencing a health problem.
The above is true of your spouse, a co-owner of the home, or anyone else for whom the home was his or her residence.
These must also apply (which they seem to in your circumstance):
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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