My ex-wife had use of the first home for the 2.5 years after 11/2020, so not empty, but it was not my primary residence during that period per court agreement. It was my primary residence before then for two years. The first house was owned equally, so my gain on the sale in 2023 is on half of the house sale minus half of the adjusted basis. I also sold my 100% owned condo in 2023, which was my primary residence after 11/2020 for two years before it was sold.
So what you are saying is that I can sell two homes in the same year and I get a TOTAL exclusion of $250,000 for the two sales as long as both served as my primary residence for 2 out of the past five years. So, the exclusion of $250,000 is per taxpayer, and not for only one sale every two years?
