Tax Implication for Sale of Condo

[Tom Patel]

Need clarification about sale of Condo for tax implication. The law says if you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free. If you are married and file a joint return, the tax-free amount doubles to $500,000. The law lets you "exclude" this much otherwise taxable profit from your taxable income.

Situation is as follows:

Purchase                                  Dec 1,2011

Owner live there until            9/13/2014

Started as a rental from         9/13/2014 - 3/31/17

It is for sale. Vacant from       3/31/17 to present

How 5 year rule work in this situation & tax implication if it is sold by 9/13/17.