My employer relocated me before I met the requirements for the home sale exclusion. Is there any relief for me?

Yes. Normally, to qualify for the home sale exclusion of up to $250,000 of gain on the sale of a principal residence ($500,000 for joint filers), you must own and use your home for two out of the five years prior to the date of sale. However, when you sell before meeting the ownership and use tests because of a job change required by your employer (not your idea), you can use a prorated exclusion. The proration is based on the time that you owned and used the home as a principal residence before the sale. So, for example, if you owned and used the home for only one year before relocating, then 50% of your applicable exclusion applies.