I don’t think it is a big problem to be taxed on profits. For me having a lifestyle that is impaired for 2 years is not worth paying several thousands in taxes. I would bail, pay whatever gains you have and count yourself lucky for that. Life is to short. Also don’t forget all of your closing costs. If you made upgrades to the home you can change your cost basis. Also any of your financing fees that were amortized you get to catch all the way up. When it is all said and done, you will not have as much as a taxable event as you think you may have. So what you get taxed on it… but you live the way you want to live and you still walk away with a profit.