I am in the military and have recently sold my house for a profit of around $12k. I have lived in the house for 4 yrs. and 5 months and have been told by several sources that I am exempt from paying taxes on my gains and do not have to reinvest in my new more expensive house. I have researched IRS pub 523 and understand the 2 year use test but I am short on the 5 year ownership test.

Q: Is military also exempt from owning property for less than 5 years? Do I owe taxes on the gain? Need the money elsewhere. Any clarification would be appreciated.

r/
FCT