I have lived in my townhouse (primary residence) since July 2015 and have considered selling my house due to the crime in the area picking up. I have considered purchasing a new house in a better area because 2 out of the 14 units in my area have been broken in and someone was robbed at knife point at the community mail box, all in the past 3 months.
I purchased the townhouse for $175,000. And based on estimates in the area from my own research and real estate agent, I could list my unit for about $212,000 and estimate to gain anywhere from $25-30K.
I understand that I do not meet the 2 year rule and was wondering how much I will be taxed on any capital gains? Or if there is something else to consider about avoiding capital gains tax by using all the proceeds for another home purchase? My state of residence is AZ if that makes any difference.