What are the primary residence tax exemption rules for tenancy in common (fractional) ownership?
Say a couple owns a home that is worth 1.4M now and was purchased for 200k. So the capital gain is 1.2M (no maintenance of note). Can the couple sell half the house to a friend for 700k (tenancy in common, not condo), take the 500k primary residence exemption on that sale, then live with the friend for two years, then sell the rest of the house to the same friend for 700k and take the 500k exemption again on that sale? I would think not, but can't find exactly why.