Q. Can we claim married Filing separately (MFS) on our taxes in order to sell two primary residences within a two year period without paying capital gains tax on either home?
A. No. You may only claim the exclusion on one home. But you may choose which one you claim. Filing MFS is not a way around that rule.
"Eligibility Step 4—Look-Back
Determine whether you meet the look-back requirement.
If you didn't sell another home during the 2-year period before the date of sale (or, if you did sell another home during this period, but didn't take an exclusion of the gain earned from it), you meet the look-back requirement. You may take the exclusion only once during a 2-year period."
