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Investors & landlords
Yes, you can possibly get the exclusion. You must substantiate the event as per the information at the bottom of the answer.
Unforeseeable events.
You meet the standard requirements if any of the following happened during the time you owned and lived in the home you sold.
- Your home was destroyed or condemned.
- Your home suffered a casualty loss because of a natural or man-made disaster or an act of terrorism. (It doesn’t matter whether the loss is deductible on your tax return.)
- You, your spouse, a co-owner of the home, or anyone else for whom the home was his or her residence:
1.Died;
2.Became divorced or legally separated;
3.Gave birth to two or more children from the same pregnancy;
4.Became eligible for unemployment compensation;
5.Became unable, because of a change in employment status, to pay basic living expenses for the household (including expenses for food, clothing, housing, medication, transportation, taxes, court-ordered payments, and expenses reasonably necessary for making an income).
Under Sale of Home, you would answer the questions that pertain to the exclusion. State the number of days lived there, and you will have the appropriate questions.
Showing facts and circumstances.
If your circumstances don’t match any of the standard requirements described above but the primary reason for sale, based on facts and circumstances, is work-related, health-related, or unforeseeable. Important factors are:
- The situation causing the sale arose during the time you owned and used your property as your residence.
- You sold your home not long after the situation arose.
- You couldn’t have reasonably anticipated the situation when you bought the home.
- You began to experience significant financial difficulty .