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Updated almost 7 years ago,
2 out of 5 year rental capital gains question
Here is the situation I am in and I am trying to find out how to avoid capital gains, if possible.
My wife and I purchase a home as our primary residence in November 2009. It was our primary residence up until May 31st, 2015. On June 1st, 2015 we rented it out and the lease expires on May 31st, 2018 or exactly three years.
We have an agreement of sale in place and scheduled closing on June 1st, 2018.
Here is the question. With that time frame, am I missing the cutoff for the 2 of 5 rule exemption by one day by closing on June 1st, 2018 instead of May 31st, 2018? Or am I ok closing on June 1st?
I cant find a ruling on this anywhere. Any help you could provide would be very valuable and extremely appreciated.
Thanks in advance.