Yes, unless you qualify for an exception to the "two out of the last five years" rule.
See https://www.irs.gov/publications/p523#en_US_2023_publink10008938
Yes, unless you qualify for an exception to the "two out of the last five years" rule.
See https://www.irs.gov/publications/p523#en_US_2023_publink10008938
taxpayers who do not meet the two-year ownership and use tests may qualify for a reduced exclusion. A reduced exclusion is available if the primary reason the taxpayer sold a main home was due to any of the following:
for each of these, a safe harbor rule is available. if the safe harbor is not met, a taxpayer can still satisfy one of the above conditions based on facts and circumstances.
Here is a link to @Mike9241's reference:
https://www.irs.gov/publications/p523#en_US_2023_publink100073096