@Catchasoundset wrote:
Hi. "Partial" was a poor choice of verbiage. What I meant was say I sell for $260,000, what percent of that figure can I reduce due to the "unforeseen circumstance"? I need to hit the suggested worksheets and maybe it's there.
Thanks and sorry for the confusion.
The unforeseen circumstance rule only comes into play if you don't qualify for the standard exclusion based on the 2 year/5 year rule.
If you do qualify for the standard exclusion, it doesn't matter why you are selling. You get a $250,000 exclusion (or $500,000 if married filing jointly) and any gain over that is a long term capital gain. You can't get a larger exclusion because of a hardship.
