@Opus 17 wrote:
Now let's consider the vacation home. If you live there for 10 years and sell it directly without moving out and creating another vacancy period, you would not have a period of "non-qualified use" to contend with
There WOULD be "non-qualified use". It was used as a Principal Residence AFTER it was NOT the Principal Residence. That triggers the non-residence period to be Nonqualified Use.
