Wyatt sells his principal residence in December 2014 and qualifies for the § 121 exclusion.He sells another principal residence in November 2015.Under no circumstance can Wyatt qualify for the § 121 exclusion on the sale of the second residence.

Question

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Generally,a taxpayer must wait two years from the use of the § 121 exclusion to again be eligible to use the § 121 exclusion.However,under a relief provision,the two­year ownership and use requirement and the only once every two years provision are waived associated with the following:
-Change in place of employment.
-Health.
-To the extent provided in the Regulations,other unforeseen circumstances.
Under the relief provision,only a partial § 121 exclusion is available.Note also that Wyatt would be eligible for the full § 121 exclusion on the sale of the second residence if he elected to forgo the use of the § 121 exclusion on the sale of the first residence.

Wyatt Sells His Principal Residence in December 2014 and Qualifies