Discussion Question 15-13 (LO. 4) 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 121 250,000 denominator of which is which is multiplied . Under this code section, the exclusion amount for a taxpayer filing single is by a fraction, the numerator of which is the number of qualifying months and the x months. The result is the maximum amount of excluded gain. The relief provision applies when the failure to meet the two-year ownership and occupancy requirement results from employment, health, or other unforeseen circumstances as defined in the Regulations Feedback Check My Work If not all the statutory requirements are satisfied, there may still be partial 121 relief available, based on time occupied.