@VictorW9 - the rule is living in the home for at least two of the last five years. The rule is not living in the home for 5 years.
if the taxpayer has lived in the home for 2 of the last 5 years and the profit is below $250,000, there is no reporting requirement. Since he purchased the home in 2016 and assuming he lived there for 24 of those months between 2016 and 2019, nothing to report on the tax return.
Also, the selling expenses are questionable - because the taxpayer states they are on the 'new purchase' which has nothing to do with this sale.
regardless, it's still under $250,000
