Is there a way to avoid capital gains tax if i sell my home before owning for two years? Its because of unforeseen circumstances.

[amestrada15]

I live in illinois

[AnnetteB]

There are some exceptions to the rule for owning your home for 2 of the last 5 years in order to exclude the gain on the sale.

Here is an excerpt from IRS Publication 523 that shows the exceptions:

Eligibility Step 5—Exceptions to the Eligibility Test

There are some exceptions to the Eligibility Test. If any of the following situations are true for you, read on to see if they may affect your qualification. If none of these situations apply, skip to Step 6.

• A separation or divorce occurred during the ownership of the home. See Separated or divorced taxpayers .
• The death of a spouse occurred during the ownership of the home. See Widowed taxpayers .
• The sale involved vacant land. See Vacant land next to home .
• You owned a remainder interest, meaning the right to own a home in the future, and you sold that right. See Remainder interest .
• Your previous home was destroyed or condemned. See Home destroyed or condemned—considerations for benefits .
• You were a service member during the ownership of the home. See Service, Intelligence, and Peace Corps personnel .
• You acquired or are relinquishing the home in a like-kind exchange. See Like-Kind/1031 exchange .