Clarification to Exclusion of Gain on Sale of Your Home in the 2016 Publication 523, Selling Your Home -- 30-JAN-2017
If you downloaded 2016 Publication 523 before January 27, 2017, please take note of the following change to the "Eligibility Step 4--Look-Back" section on page 3. The two year look back period is based on the date of the sale or exchange of your home and not on your previous two years tax returns. A homeowner can only use the exclusion of gain on the sale of the home one time in a two year period. The date of the prior sale or exchange of the home will be used to determine of the homeowner qualifies for the exclusion.
The amended version of the 2016 Publication 523 is available for download.