Hello, I'm just a cpa in training, but the correct answer is if you have lived there for 2 of the past 5 years you don't have to pay tax on 250k of capital gains; that's if you're single, if you're married, you can shield 500k of capital gains. However, if you have lived there less than the 2 years, there are a few cases where you can shield some of your gain (I know divorce is one and I think job relocation is another, but don't quote me on that).