Selling 2 owner occupied homes in 1 year?

[Jennifer Hillberg]

Good Morning all,

I have a question about selling my home. Here's the situation: My husband and I lived in our home for 2 years. We had to move to another city. Instead of selling that home, we're renting it out. I know the tax law says that you must live in your home for 2 of 5 years in order to qualify for the tax free profit (up to $500K for married couples). We are now living in another home - and plan to sell when we move again (we're military - we move a lot). My question is --- can I sell both homes under the free profit rule? Most likely - they'll sell the same year (2010).

thank you