CCH Federal Taxation Basic Principles
13 of 66
Only Lynne occupied the home as her principal residence during two of the five years preceding the sale.
(Note: Had Greg and Lynne decided to use Lynne’s home as their principal residence during any two of the five years preceding sale, they could have claimed a $500,000 exclusion even though Greg was not an owner.)
Sale of Home by Married Taxpayers
Chapter 11, Exhibit 3b