Deductions & credits

For the "2 years of the last 5 years" rule, "ownership" is imparted by marriage but not residency. 

 

You can file a joint return for 2021, but the maximum exclusion your spouse can claim on her home is $250,000. You can't use the full $500,000 exclusion for 2 reasons:

1. you used your own exclusion less than 2 years before your spouse sold her home,

2. you have not (I assume) lived in your spouse's home as your main residence for 2 years before the sale date.

 

Then, you can't use the full $500,000 exclusion for the sale of another home (if you need to move again) until 2 years + 1 day after your wife used her exclusion for the 2021 sale.