For determining whether a taxpayer qualifies to exclude gain on the sale of a principal residence, the periods of ownership and use need not be continuous nor do they need to cover the same two-year period.

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According to IRS Publication 523, the periods of ownership and use of the property do not need to be continuous and do not have to cover the same two-year period for a taxpayer to qualify for the exclusion of gain on the sale of a principal residence. However, there are certain requirements regarding the length of ownership and use that must be met.

For Determining Whether a Taxpayer Qualifies to Exclude Gain on the Sale