Sold our home 8/16. Purchased 10/03, lived there the entire time. Married, filing jointly and Turbo Tax says our gain (under 100K) is not excluded. Seems incorrect.

[PaulaM]

Don't enter the sale of a primary residence if you meet the tests below.

You may qualify to exclude from income all or part of any gain from the sale of your primary residence if you meet ownership and use tests. This means for the 5-year period ending with the sale of the home, you lived in it as your main home and you owned it for 2 years.

If you meet both tests, you may exclude up to $250,000 ($500,000 on joint returns) of gain from your income, and you would not report it on your return.

Do not report the sale of your main home on your tax return unless:

• You have a gain and do not qualify to exclude all of it,
• You have a gain and choose not to exclude it, or
• You have a loss and received a Form 1099-S.

Sale of main home 

IRS pub 523