@Hal_Al
Even if they owned the home less than two years and lived in the home less than two years, they could qualify for a partial exclusion using one of the safe harbors or the facts and circumstances exception in the regulations which is described in publication 523. In that case, the amount of the partial exclusion is determined by the shortest of three periods.
A. The length of time since they last used the exclusion.
B. The length of time they lived in the home as their main home.
C. The length of time they owned the home.
If the taxpayers do not qualify for a partial exclusion under the special circumstances or Safe harbor rule, then they must not close on their current sale until on or after November 3, 2021.
