I have two questions related to the capital gains exclusion on real estate.

1) How do you prove you've lived at the home for 2 out of the last 5 years?

2) If you build a new home prior to selling on the same lot does this still apply?

1) How do you prove you've lived at the home for 2 out of the last 5 years?=======>you may prepare copies of Paystubs, utilities (phone, sewer, elect,etc) , rent, mortgage, insurance (auto and home) among others. Or etc.

2) If you build a new home prior to selling on the same lot does this still apply?============>Correct;your primary home is the onw in which you lives for a majority of the year.