CCH Federal Taxation Basic Principles
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Fred, a single individual, owns and occupies his home during all of 20x1 and 20x2. He rents it to a tenant during all of 20x3, 20x4 and 20x5. He sells it on December 31, 20x5, realizing a $200,000 gain. If Fred had not taken exclusion on the sale of any other principal residence during 20x4 and 20x5, he may be entitled to exclude all of the $200,000 gain in 20x5.
Chapter 11, Exhibit 1c