Gift all of your house to your child.

Gift all of your house to your child. Your child has the same basis as you in gifted property so the gain remains in the house until subsequent sale by your child. Thus, this is not an ultimate escape from tax on the excess gain. But if your child lives in the property for the next several years, perhaps postponing the taxable gain will help. Alternatively, you can sell a part of the house and exclude gain on the partial sale. Then gift the remainder of the house to your child. Even if you sell only a percentage of the house, the gain is excludable up to the $250,000/$500,000 amount.