further guidance. either spouse can own the home for 2 out of the 5 years ending on the date of sale but both must have occupied it as their principal residence for the 2 out of 5 years ending on the date of sale. there is a frequency limitation so, during the two-year period ending on the date of sale, neither spouse excluded gain from the sale of another residence. for the occupancy test the two-year period does not have to be the same for each spouse. for the ownership test treat both spouses as owning the property for the longest period owned by either spouse.
