2 out of 5 year ownership requirement

[Alexander Fichel]

I've searched this forum and googled and checked irs.gov, and still fail to understand this requirement about ownership. Everyone seems to ask questions about the residence requirement which I get. You have to live there 2 non contiguous years out of 5. But for for ownership requirement, how can you own the home for at least 2 years out of the last 5? This wording is throwing me off. How can I not own the house preceding the sale. Why can't they just write, you have to own the house for at least 2 years proceeding the sale. What does the "within 5 years" mean? How can you own a home for 3 years, and then not own it for 2 years and then sell a home you don't own??

From irs.gov site:

Eligibility Step 2—Ownership

Determine whether you meet the ownership requirement.

If you owned the home for at least 24 months (2 years) out of the last 5 years leading up to the date of sale (date of the closing), you meet the ownership requirement. For a married couple filing jointly, only one spouse has to meet the ownership requirement.

irs eligibility

[Bill B.]

@Alexander Felice @Dave Foster

Alexander, I don’t get around much, but I have NEVER heard of the time you rent from a landlord being counted for a tax exempt sale ownership period.

Every example I’ve ever heard is about rental versus primary homestead percentages during your ownership. I’m hoping dave will have concrete knowledge on this and if I’m wrong I’ll earn something again today. There’s just sooo much room for abuse if you count your time as a renter.