Hello, 

I'm married, filed jointly, and we had not used the home sale exclusion.

We had been living in our primary residence for 3 years when our home was impacted by a landslide and all neighbors impacted sued each other to have insurance liability kick in to get it remediated. The good news was, we could still occupy the home. Then I got offered a job out of state that same year. 

When offered the job, I wanted to sell the home, but couldn't because of the landslide and the pending lawsuits amongst the insurance carriers. We also could not rent it out because no tenant wanted to live in the home because of the landslide and lawsuit. Fast forward 5 years, the landslide and our home has been fixed and we now want to sell our home. 

When we sell our home, would we be able to request the full exclusion amount of $500K under the unforseen circumstances rule? If so, how do I go about doing this?