Yes, you can, the service exclusion. Pls see this IRS Publication 523. https://www.irs.gov/publications/p523
Does Your Home Sale Qualify for the Exclusion of Gain?
The tax code recognizes the importance of home ownership by allowing you to exclude gain when you sell your main home. To qualify for the maximum exclusion of gain ($250,000 or $500,000 if married filing jointly), you must meet the Eligibility Test, explained later. To qualify for a partial exclusion of gain, meaning an exclusion of gain less than the full amount, you must meet one of the situations listed in Does Your Home Qualify for a Partial Exclusion of Gain, later.
