Question If I exclude the gain on the sale of my former principal residence this year, can I take the exclusion again if I sell my new principal residence in the future? Answer You can exclude gain from the future sale of your principal residence (within the limits of the exclusion) as long as you satisfy the ownership and use tests and haven't excluded gain from the sale of a former principal residence within the two-year period ending on the date of the sale. Also, if the future sale of your home is due to a change in employment, health, or unforeseen circumstances, you may qualify for a reduced exclusion even if you fail to meet the ownership and use tests or you used the exclusion within the two-year period ending on the date of the sale. There's no limit to the number of times you can claim the exclusion. Additional Information Tax Topic 703 - Basis of Assets Tax Topic 701 - Sale of Your Home Publication 523, Selling Your Home Category Capital Gains, Losses, and Sale of Home Sub-Category Property (Basis, Sale of Home, etc.)