Can I pay capital gains on home sale from last year (lived there 2years) and use the exclusion for a current sale (lived here 1 year)?

[nnoonkester]

We purchased June 2017 and sold Feb 2020, we made 46k. We purchased a new home with that in feb 2020. We are now currently selling that home, set to close March 2021 making 132K. Can I pay capital gains on the 46k and use the exclusion for this home sale?

[tagteam]

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@nnoonkester wrote:
Can I pay capital gains on the 46k and use the exclusion for this home sale?

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Yes, you can.

Per Section 121(b)(3), the limitation is applicable to one sale every two years.

Thus, you can choose the sale to which you want to apply the exclusion.

[nnoonkester]

Even tho we have only owned and lived in this home for 1 year? I read somewhere we needed to be here for at least two is that the case?