[retiredguy123]

The easiest way to get the correct professional answer is to buy the Turbotax software and answer all of the questions regarding the sale of your house or houses during the tax year. Turbotax will calculate any capital gains that you owe. But, the general rule is that you need to live in a house for 2 of the past 5 years as your primary residence to avoid capital gains taxes on the gain. So, if you lived in the house for less than 2 years total, you probably will owe tax on the gain. And, if you owned the house for less than one year, the gain would not be a capital gain, but it would be taxed as ordinary income. This rule is not a one time deal. It can apply to as many houses as you own throughout your life.