http://www.irs.gov/publications/p523/ar02.html#en_US_2014_publink1000200611
How your sale qualifies. Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if the following is true:
You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.
You did not acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.
You did not claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.
How your sale qualifies. Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if the following is true:
You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.
You did not acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.
You did not claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.