<p>I believe dogwood’s info is incorrect. The exclusion is not ‘one-time’ that is used up over a number of transactions. That’s how it used to be, no more. Rather, it is ‘per transacation.’ - talk to a tax professional. As pointed out, jmmom’s post also had incorrect information.</p>
<p>Yep, my mistake on the exclusion…I’m behind the times; haven’t sold a house since that was applicable. Read up AFTER the fact and now have egg on my face. This is why I stick to more basic bookkeeping and not so much tax anymore…too much info to try to keep track of. It’s always best to consult with the experts when things get even a little bit complicated. </p>
<p>Thanks for setting that straight. Publication 523 does address quite a few of the possibilities, though, so a novice could probably get the drift of most common situations by reading that.</p>