These would be 2 different sales. When the lots were split, you were no longer selling one property. The capital gains exclusion for home sales applies to one home in a 2 year period. The home needs to be your primary home for 2 out of the 5 years. You already claimed the home sale exclusion for the home you actually did live in, you would not be able to claim it for the adjacent lot that was not actually your home. This would be a separate sale.
The Unforeseen clause is meant to help if you would sell your house without living in it for the full 2 out of the 5 years. The exclusion would then be prorated based on how long you lived there. A vacant lot cannot count for the home sale exclusion.
So yes, you would be required to pay the capital gains on this sale. But even if it would have happened 6 months after the actual home sale, you still would have had to pay the capital gains.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
