what i found is that the partial exclusion is based on the smaller of the time period the homeowner meets the ownership and use requirements.
When a taxpayer alternates between two (or more) homes, the home that is used the majority of the time during the year will ordinarily be considered the principal residence which is the only the only home that qualifies for gain exclusion. REG 1.121-1(b). There are other factors that can be used in determining a taxpayer's principal residence include:
- the taxpayer's place of employment
- The principal place of abode of the taxpayer's family members
- The address listed on the taxpayer's federal and state tax returns, driver's license, auto registration, and voter registration
- The taxpayer's mailing address for bills and correspondence
- The location of the taxpayer's banks
- The location of religious organization and recreational clubs which the taxpayer utilizes
no one factor is determinative.
this is from iRS PUB 523 home sale
Health-Related Move
You meet the requirements for a partial exclusion if any of
the following health-related events occurred during your
time of ownership and residence in the home.
• You moved to obtain, provide, or facilitate diagnosis,
cure, mitigation, or treatment of disease, illness, or in
jury for yourself or a family member.
this seems to contradict what you say you found
The IRS doesn’t calculate the exclusion based solely on days physically lived in the home. Instead, they look at the time owned and the unforeseen reason that prevented meeting the two-year residency requirement. For a partial exclusion, you calculate based on the portion of time owned and used as your residence within the two-year period. However, the "use as your residence" can include situations where you intended to live there but were prevented due to medical reasons.
see if others comment and it may be best to consult a pro.
