I am looking to sell my house that I have lived in for less than 2 years. I lost my job and am unemployed can I bypass paying the 25% for capital gains?

[DanO · Accepted solution]

Yes, but maybe not all.  Even though you did not live in you home for 2 years you can still qualify for partial exclusion from capital gains.

The reduced exclusion when you haven't owned and lived in you home for 2 or past 5 years is available if you sold your home early due to a change of employment, or a change in health, or because of other unforseen circumstances, such as divorce.

You can figure your exclusion by this formula:

Time (months) you lived in house Divided by 24 months Times $250,000.

For example 18 / 24 * $250,000 = $187,500 exclusion.

[saracfern]

Thank you!

[DanO]

You're welcome!