Wyatt sells his principal residence in December 2010 and qualifies for the § 121 exclusion.He sells another principal residence in October 2011.Under no circumstance can Wyatt qualify for the § 121 exclusion on the sale of the second residence.

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While there is a two-year waiting period between the sales of principal residences in order to qualify for the § 121 exclusion, it is possible for an individual to qualify for the exclusion multiple times in their lifetime. As long as the individual meets the ownership and use requirements for each residence, they can potentially exclude up to $250,000 (or $500,000 if married filing jointly) in gain from the sale of each residence.

Wyatt Sells His Principal Residence in December 2010 and Qualifies