@Mike9241 wrote:
IRS PUB 523 states the following:
If you become physically or mentally unable to care for yourself, and you use the residence as your principal residence for 12 months in the 5 years preceding the sale or exchange, any time you spent living in a care facility (such as a nursing home) counts toward your 2-year residence requirement, so
long as the facility has a license from a state or other political entity to care for people with your condition.
Quoting Section 1.121-1(c)(2)(ii).
https://www.law.cornell.edu/cfr/text/26/1.121-1
