Bottom line: no matter how the ownership is structured, in order for any owner to qualify for the capital gain exclusion the residence requirement must also be met.
The requirement is that during the 5-year period ending on the date of the sale or exchange, the property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
