Donald resold his former principal residence after he repossessed it$.$ He must use the general rule for repossession of qualified real property to determine gain or loss on repossession if:

His residence was resold within one year of the date of repossession.

His residence was resold $24$ months after the date of repossession.

All or part of the realized gain on the original sale was excluded.

He qualified for the sale of home exclusion in the year of the original sale.