If she sells the property before that date, she would not qualify for the full exclusion unless she meets certain exceptions such as unforeseen circumstances like job loss, health issues, or other qualifying reasons outlined in IRS Publication 523.Regarding prorating the exclusion, unfortunately, there's no provision in the tax code for prorating the exclusion based on partial years of ownership or residence.

My name is Vladimir, my wife and I are Ukrainian refugees residing in Canada (I have russian passport and my wife has Ukrainian one), and we are looking for a ways to invest in tax deeds in USA.1.

Can your income sustain the loss and when will it cash flow? 

The current loan would have to evaluate your debt to income with the additional debt etc.

Beware of incoming phone calls.

Does anyone have any experience using oil and gas tax deductions (Intangible Drilling Costs: 100% tax deductible during the first year and tangible Drilling Costs: 100% tax deductible) to reduce tax liability against Roth conversions ?   

Unfortunately the lot is not currently worth much, the value was in the AHA rental income.    

So all of my income goes toward paying down the principle.

Tax free on the gains if your primary residence for 2 out of 5 years.  

Yes, you'll be paying taxes on that income, but it's still better to have it as income than not, just like you're better off earning $80k/yr than $50k/yr, even though you're paying taxes on that additional $30k.