Are there exceptions to the residential property flipping rule for life events like divorce or job loss?

Yes. The flipping rule has a specific, limited list of life-event exceptions that take a sale outside the rule even if the property was owned for a short period. These include the death of the owner or someone related to them, a household change needing more or less living space, the end of a marriage or common-law relationship, a threat to personal safety, a serious illness or disability, an employment change requiring relocation, insolvency, and an involuntary disposition such as expropriation or destruction of the property by disaster.

If one of these genuinely applies to your situation, the sale can be treated under the normal rules instead, meaning the gain can potentially qualify as a capital gain, and the principal residence exemption can potentially still be available if the home genuinely was your principal residence. These exceptions are specific categories, not a general "reasonable excuse" standard, so it's important to look at whether your situation actually fits one of the recognized categories rather than assuming any good reason for selling quickly will qualify. Documenting the life event itself - the job offer, the medical diagnosis, the separation - is important support if CRA questions why the exception should apply.