Q. If I lived in my house for 1 year & 2 months & sold it because of the death of my husband, do I have to pay capital gains on the profit?
A. Simple answer: no. Death of a spouse is an exception to the 2 year ownership/living in rule.
But taxes aren't simple. As others have said, how you go about reporting it depends on more details. You say you lived in the house but don't say whether you also owned it.
The "partial exclusion" (14/24 x $500,000 = $291,667) is actually a reduced maximum exclusion. If your gain is less than $291,667, you will be able to exclude it all.
