Section 121 Exemption

[John Jones]

I want to start this post regardless of answers; I know I need to consult with an accountant. 

I am trying to understand the 121 exemption. My wife and I have owned our primary residence for over two years. We are about to sell our home and move into an apartment. We should have sizable capital gains from the sale. If I am reading the exemption right, should we be allowed to write off up to 500k in capital gains? 

I appreciate all insight! 

[Wayne Brooks]

Originally posted by @Bruce Lynn:

and the way I understand is that the exemption is lifetime.....so if you you already got the $500K on a different house, or even some other capital gain on another house, than the full $500K might not apply.  Also the way I understand is that the capital gain doesn't matter if you roll that into another primary within 2 years.   However you're talking to amateur here.

Nope...

The exemption, $250k single/$500k joint return is Per primary residence, not lifetime.

20 years or so ago, the exemption only applied if you bought another primary afterward....that no longer applies.