If you sold a home after May 7, 1997, and before the current sale that you are working on, do not put anything on Worksheet 2 line 5l. You should have used the postponed gain from before May 7, 1997 as an adjustment to the basis of the first home that you sold after May 7, 1997. After that you have paid the tax on the postponed gain, and you no longer have any postponed gain.
But if the home you are selling now, or have recently sold, is the first home you have sold after May 7, 1997, enter the postponed gain as I stated in my previous reply.
