You cannot take the exclusion if the home in Virginia was not your principal residence for at least 2 of the last 5 years before the sale. You would have to prove that the majority of your time was spent in Virginia, and that it was considered your tax home. If you primarily lived and worked in Florida during this time, periodic visits will not make the residence in Virginia "principal." Additionally, if you rented the home during this period, it is not a principal residence during the rental periods.
For example, did you claim all income and file as a resident of Virginia on state tax returns? Was the majority of your time spent in Virginia versus Florida?
TurboTax will help you determine your exclusion.
To enter, follow these steps:
- Under the Federal menu, choose Wages & Income
- Expand the menu for Less Common Income
- Click Start/Revisit next to Sale of Home (gain or loss)
- Enter the information on the screens that follow
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