Investors & landlords

Sorry ... but the rule is only one home exclusion in a 2 year period so you pay the cap gains on this one. 

 

And think of it this way ... you only have to pay short term cap gains taxes on the profit and not also FICA/SE taxes like you would if you were in the business of remodeling/flipping or the contractor you could have paid.  That is just the way it is.