Home purchased as primary residence but never lived in
We purchased a home last year that we were planning to rehab completely and then move into. The rehab happened, but the move in did not because my wife was transferred to another city. We've been in a rental throughout the rehab and are about to sell the house. Because we purchased the house under a primary residence loan, and our intent was to move in, we're wondering if we can make the argument that it was our primary residence and claim any gain tax-free. (The IRS allows for a pro-rated exclusion on any gains if you can show that you have to move to another city because of a job change.) Think this might fly? Or is there no way to get around the rule that you have to have actually resided at the property? Take it easy on me if you think this is crazy!