How to Know if You Can Exclude Gain on Sale of Your Home

If you acquired the home through a what's called a 1031 exchange in the last five years, you're not eligible for this. The ownership test simply says you need to have owned it at least 24 months out of the last 5 years up to the date of the sale. If you are subject to expatriation tax and you're selling a primary house, sorry, but it reads to me that you cannot exclude the gain on the sale.