Active duty military who received PCS orders to move. We moved before we owned/lived in our house for 2 years (sold home). Are we exempt from capital gains tax?

[DMarkM1 · Accepted solution]

You would be eligible for a partial exclusion.  Follow the TurboTax prompts in the "Home Sale" topic answering questions for the exception to the 24-mo test.  A work related move would qualify. Here is the applicable IRS Publication with more information. 

The topic of military moves as it relates to home sales is a suspension of the 5-year period.  So had you kept the home and PCS'd and came back after 5 years you could still count the time in the property before and after the PCS to get to the 24 mos.