2-out-of-5-Year Rule
I purchased a home in FL in April 2020. I moved out in Jun 2023 to a home in TX and began renting the home in July 2023. The renters want to buy my home. I'm married. If we sell the home are we still eligible for the capital gains tax exemption? Where exactly do we sit within the 2-out-of-5-Year Rule? Thanks.
Quick Answer:
Yes, you are likely still eligible for the capital gains exclusion.
The "2-out-of-5-year rule" requires you to have owned the home and used it as your principal residence
Note: This answer is provided for convenience only. It is important that you speak to a CPA about your individual tax situation.
