@Caroleg22
After further thought,
Yes, in principle you can claim the exclusion. However, the calculation is complicated by any insurance payment you received in 2022, because that reduces your basis and might have been taxable in 2022.
You say you bought the property 15 years ago for $150,000. There was a fire in 2022. You did not rebuild the house. You sold the land in 2024 for $150,000.
Can you answer these questions to start:
1. Did you get an insurance payout in 2022? How much?
2. Did you declare a casualty loss on your tax return? If so, how much?
3. If you received an insurance payout in 2022, did you declare it (or part of it) as taxable income on your 2022 tax return?
4. Did you pay for demolition or remediation of the land after the fire, and was that covered by insurance or did you pay out of pocket?
[Edited to add]
5. Did you pay for any permanent improvements between the purchase and the fire (like a new roof, solar panels, new furnace or air conditioning, and so on)?
