Discussion Question 13-25 (LO. 8) To qualify for exclusion treatment on the sale of a principal residence, the residence must have been owned and used by the taxpayer for at least two years during the five-year period ending on the date of the sale. Are there any exceptions to this provision? There is an exception under Under this code section, the exclusion amount for a taxpayer filing single is which is denominator of which is by a fraction, the numerator of which is the number of qualifying months and the months. The result is the maximum amount of ( gain. The relief provision applies when the failure to meet the two-year ownership and occupancy requirement results