Since posting, I found this thread: Solved: Section 121 and marriage which is similar, and the responses state:
"the legal workaround for the frequency test for married couples is that if each spouse owns a home that meets the ownership and use tests and each meets the frequency test - have not used the HSE in the two years ending on the date of sale of their home, each can exclude up to $250K "
"if the frequency test is not met, the allowable exclusion is limited to the sum of the amounts each spouse would be qualified to exclude if they had not been married. "
Are these statements not true?
