"AND WILL REPURCHASE"

Has nothing to do with any exclusion. There is no Delay in reporting. It either qualifies for exclusion, or it does not. Because this rule changed so many years ago, it isn't clear you are using ProSeries as a professional preparer for this client.

What happens if you fill in the info in the ProSeries program, and let the program handle it? It seems you were expecting something different than what you have?