Kevin, there are a few different exceptions to the rules for how long you live in the house to be able to claim the tax exemption. Under some circumstances you can prorate the exemption. With only about $50k in profits, you would be well under half of the $500k mfj exemption limit. So, if you fit a loophole, and live there half of the required period, say 2-1/2 years, you could. claim up to half of the mfj limit. It doesn't necessarily work for everyone, but see if you can make it work for you.