@TomD8
That FAQ doesn’t actually cover this situation. That FAQ discusses the situation in which a taxpayer moves out of their home for a time before selling it. If the taxpayer moves out of their primary home and sells it within three years, that is still considered qualified use. However, if the taxpayer moves out of their home for a few years and then moves back into the home and resumes using it as their main home, the time period when they were out of the home is not qualified.
The IRS used to describe this in publication 523, but they stopped several years ago, and they don’t really address it at all now. However, the calculation is included in worksheet 2 in publication 523. Because TurboTax follows all of the IRS work sheets, I believe TurboTax will include the calculation correctly, but I haven’t tested it lately.
