At a particular point in time, a taxpayer can have two principal residences for § 121 exclusion purposes.

Question

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According to IRS publication 523, a taxpayer can only treat one property as their principal residence at a time for the purpose of claiming the § 121 exclusion. In order for a taxpayer to qualify for the exclusion, the property must have been their main home for at least two out of the past five years.

At a Particular Point in Time, a Taxpayer Can Have