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Updated almost 7 years ago,

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6
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0
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Mike A.
  • Seattle, WA
0
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6
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Rental - CA - 2/5 Rule Capital Gains Question- CA

Mike A.
  • Seattle, WA
Posted

Hello All, 

First time poster, just joined.  I have searched the site about rental capital gains and I believe I understand that you must live in the property 2 out of the last 5 years to escape capital gains tax.  However, what I haven't seen is the timing of these two years?  Is it any month in a year? Or do you need to live a full 12 months of that year. 

My situation.  Bought home in San Diego in April 2013.  Lived there until approx Dec 2014 when I was relocated to another state.   Got a renter in Dec 2014/Jan 2015 and that person has been renting ever since. 

Now here we are April 2018.  If I moved back at the end of 2018, have I satisfied the two year rule?  How many months of those two years do you need to live in the house?  Could it just be two months? Dec of one year and Jan of the next year?  How does the timing work on the two years?  Thank you.  

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