My wife and I built a primary home 30 years ago in one city. We bought a second home in another city 15 years ago. The past two years we have lived in the second home due to the availability of more medical services for a series of medical problems. We maintained our mailing address and voting precinct with the primary home. This year we sold the second home for a profit. Since we owned the first second home for at least 2 years during the 5-year period ending on the date of sale, I believe we meet the Ownership test. Since we have used the home as our principal residence for at least 2 years during that same 5-year window, I believe we have met the Residence test. Since we have not claimed the Section 121 exclusion on another home sale during the 2-year period before the current sale, I believe we meet the Look-Back Test. I believe that our profit on the sale (75K) is not taxable, but I am worried that we did not change mailing addresses or voting precincts. I picked up mail and drove to vote. Do I need to worry about this or only if we are audited? How do I explain this on the tax forms?
