Posted by Stew (NE) on June 05, 2000 at 10:04:56:
I don’t know about fair but here is the tax rule, You can read it yourself in the Tax Center at www.yahoo.com.
If you?ve owned your home and have lived in it for two of the previous five years, then you can make a profit of up to $250,000 if you?re single or $500,000 if you?re married, with no tax bill.
If the “over two years” means over 3 you are out of luck as far as that rule is concern. You can use a 1031 exchange roll the equity over in to another rental property. But that is another discussion, search for 1031 in the archives.