Mary has owned her principal residence for over six years. Two years ago, she married John, who immediately moved into the residence. John has never used the Section 121 exclusion. If Mary sells the residence this year and John and Mary file a joint return, which of the following statements is CORRECT with respect to the availability of the Section 121 exclusion?
1) The Section 121 exclusion will not be available to Mary and John because they have not owned the residence for at least two years.
2) The Section 121 exclusion will be available to Mary and John because they have owned the residence for over six years.
3) The Section 121 exclusion will be available to Mary and John because they have owned the residence for at least two years.
4) The Section 121 exclusion will not be available to Mary and John because John has never used the exclusion before.