I recreated your situation and I was able to have $0 taxable gain. On the Reason for Sale screen, I used Change in employment leaving you unable to pay mortgage or basic living expenses. See the screenshot below.
- For example, you might have lived in your home for 12 months, then you had to sell it for a qualifying reason. You're not married. Twelve months divided by 24 months comes out to .50. Multiply this by your maximum exclusion of $250,000. The result: You can exclude up to $125,000 or 50 percent of your profit.
However, if you sold another main home after July 1, 2016, which is the date two years before you sold this home and you excluded part or all of the gain on that first home sale, you may not be able to exclude it.
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