Exclusion for taxpayers failing to meet certain requirements

(1) In general

(1)In general#

In the case of a sale or exchange to which this subsection applies, the ownership and use requirements of subsection (a), and subsection (b)(3), shall not apply; but the dollar limitation under paragraph (1) or (2) of subsection (b), whichever is applicable, shall be equal to—

(A) the amount which bears the same ratio to such limitation (determined without regard to this paragraph) as

(B) (i) the shorter of— (I) the aggregate periods, during the 5-year period ending on the date of such sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence; or (II) the period after the date of the most recent prior sale or exchange by the taxpayer to which subsection (a) applied and before the date of such sale or exchange, bears to (ii) 2 years.

(1)(A)#

the amount which bears the same ratio to such limitation (determined without regard to this paragraph) as

(1)(B)#

(i) the shorter of— (I) the aggregate periods, during the 5-year period ending on the date of such sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence; or (II) the period after the date of the most recent prior sale or exchange by the taxpayer to which subsection (a) applied and before the date of such sale or exchange, bears to

(ii) 2 years.

(2)Sales and exchanges to which subsection applies#

This subsection shall apply to any sale or exchange if—

(A) subsection (a) would not (but for this subsection) apply to such sale or exchange by reason of— (i) a failure to meet the ownership and use requirements of subsection (a), or (ii) subsection (b)(3), and

(B) such sale or exchange is by reason of a change in place of employment, health, or, to the extent provided in regulations, unforeseen circumstances.

(2)(A)#

subsection (a) would not (but for this subsection) apply to such sale or exchange by reason of—

(i) a failure to meet the ownership and use requirements of subsection (a), or

(ii) subsection (b)(3), and

(2)(A)(i)#

a failure to meet the ownership and use requirements of subsection (a), or

(2)(A)(ii)#

subsection (b)(3), and

(1)In general#

(A) the amount which bears the same ratio to such limitation (determined without regard to this paragraph) as

(1)(A)#

the amount which bears the same ratio to such limitation (determined without regard to this paragraph) as

(1)(B)#

(ii) 2 years.

(2)Sales and exchanges to which subsection applies#

This subsection shall apply to any sale or exchange if—

(B) such sale or exchange is by reason of a change in place of employment, health, or, to the extent provided in regulations, unforeseen circumstances.

(2)(A)#

subsection (a) would not (but for this subsection) apply to such sale or exchange by reason of—

(i) a failure to meet the ownership and use requirements of subsection (a), or

(ii) subsection (b)(3), and

(2)(A)(i)#

a failure to meet the ownership and use requirements of subsection (a), or

(2)(A)(ii)#

subsection (b)(3), and

Exclusion for taxpayers failing to meet certain requirements

(1)In general#

(1)(A)#

(1)(B)#

(2)Sales and exchanges to which subsection applies#

(2)(A)#

(2)(A)(i)#

(2)(A)(ii)#

Exclusion for taxpayers failing to meet certain requirements

(1)In general#

(1)(A)#

(1)(B)#

(2)Sales and exchanges to which subsection applies#

(2)(A)#

(2)(A)(i)#

(2)(A)(ii)#

(1)(B)(i)#

(1)(B)(i)(I)#

(1)(B)(i)(II)#

(1)(B)(ii)#

(2)(B)#