I also saw this article on another website. Very confusing, but according to this it looks like we would qualify.
- Look-back — You may take the home sale exclusion only once during a two-year period. If you excluded the capital gain generated by the sale of another home during the two-year period before the sale date (closing date) of the current home, you cannot exclude the gain on this sale.
Again, no profit was made from the first home sale.
Thanks
