TP was not able to take advantage of the Cap Gain Exclusion because he moved to China for work more than 5 years before he sold his US Home.  I think the answer is YES,  in the future when he sells his Main Home in China and lived there 2 out of 5 years and did not take the same exclusion 2 years before the sale, he can qualify for the Cap Gain Exclusion even the home was in a foreign country. Thank you!