Wyatt sells his principal residence in December 2012 and qualifies for the § 121 exclusion.He sells another principal residence in October 2013.Under certain circumstances Wyatt can qualify for the § 121 exclusion on the sale of the second residence.

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According to IRS rules, a taxpayer can only claim the § 121 exclusion once every two years. However, there are certain circumstances, such as job change, health issues, or unforeseen circumstances, which could allow the taxpayer to claim a prorated amount of the exclusion on the second sale, as long as it occurs within the two-year period. Therefore, it is possible for Wyatt to qualify for the § 121 exclusion on the sale of the second residence under certain circumstances.

Wyatt Sells His Principal Residence in December 2012 and Qualifies