Ed owned and used his home in Kentucky as his principal residence for $15$ years. He moved to another state in the $16$th year and rented the Kentucky home. Two years later he sold the Kentucky home. Ed's brother, Fred, had two houses. Fred owned and used his home in Tennessee as his principal residence for $10$ years. He had another home in Florida. In the $11$th year, he moved into his Florida home. He resided there for $3$ years and then sold the Florida home. Which of the brothers has "nonqualified use" of his principal residence that will reduce the exclusion on the gain on a sale of a personal residence?

Multiple choice question.

Ed $-$ because he moved out of his house and had a new principal residence for the last two years.

Fred $-$ because he moved into the home after a period of nonqualified use.

Neither Ed nor Fred $-$ Both brothers meet the ownership and use tests because they owned and used the property for $2$ of the $5$ years before the sale.

Both Ed and Fred $-$ During the $5$ year period preceding the sale, both brothers had principal residences other than the homes they sold.