If a taxpayer excludes the gain on the sale of his personal residence and,within two years,sells a second residence,he or she can exclude (up to $250,000 for a single taxpayer):

Question

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The taxpayer can only exclude a portion of the gain based on the ratio of the days owned divided by 730 days, and only if the sale is due to health, employment reasons, or unforeseen circumstances. This is known as the "temporary absence" rule and applies if the taxpayer owned and used the property as their main home for at least two out of the five years before the sale, but did not meet the two-year ownership and use tests because of a temporary absence (such as for work or health reasons). If the sale is not due to these circumstances, the taxpayer cannot exclude any of the gain on the second sale.

If a Taxpayer Excludes the Gain on the Sale of His