A partial home sale exclusion may be available for taxpayers who fail to qualify for the two-out-of-five-year ownership and use rule, or who have previously used the exclusion on the sale of another home within the two-year period ending on the sale date of the current home.

The maximum gain that can be excluded is equal to the full $250,000 or $500,000 exclusion times a fraction having as its numerator the shorter of:

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