At what point can we sell to qualify for full exemption?
An absolute minimum of 731 days after your closing date on the last sale you took the exclusion on. One day early and you don't qualify.
Additionally, the property "MUST" have been your primary residence for an absolute minimum of every single day of those 731 days too. One day short and you don't qualify.
Now I count days. But the IRS counts differently. If the house was your primary residence from the 1st to the 15th of the month, then that month does not count at all. Whereas if it was y our residence from the 1st to the 16th of the month, then the entire month counts. For me, I would suggest you use a day count and add 30 days to it to account for the 16 day requirement on each side of the middle of the month. Then you can't possibly miss.
Example:
Property from last sale was your primary residence at the time of the sale and you closed on the 16th of the month. Your count for the next house starts on the 1st day of the next month. It's like you just "lose" the days from the 17th (day after closing) to the end of the month.)
