On Worksheet 2 line 5l enter the postponed gain from the last Form 2119 that you filed, which would be for the last home that you sold prior to May 7, 1997. That takes into account the gain that was postponed on any earlier home sales, because the gain on the last sale before May 7, 1997 included the postponed gain from the earlier sales. The gain on the last sale was increased by the postponed gain from the earlier sales, because the previously postponed gain reduced the basis of the last home that you sold before May 7, 1997.
