Phil, you wrote

"After rest and reflection, a suggested step before my earlier suggestion. First write him a nice letter explaining his error, with a cite to Code section 121 and the regs under it. You could even cite Example 1 of 26CFR §1.121-1(c)(4), which is exactly your fact pattern except that the taxpayer in the reg moved out of state. Then ask him to prepare the amended return for no additional charge."

Thanks again for your help. Have a couple more questions if you have time or interest at this point.

I have to ask if you are a CPA? Can you send me the link showing the code you mentioned above?

I have spoken with 5 CPAs now and the last two agreed with the folks on this board. Thus, I'm truly confused as all 5 CPAs were independent CPAs and seasoned at that and have a difference of opionion. Hence, if I were to file an amended return I would want to know for sure I was doing the right thing.