Avoiding Capital gains tax

[Brian Ellis]

Hello friends,

What are the rules to avoiding capital gains tax?

I believe it’s a minimum of living in a primary residence for two years. But what about turning it into a rental after the 2 years?

My first house I house hacked and lived in for a little over two years as I fixed it up, I currently have it rented out and their one year lease is up in the summer. Can I still sell it and avoid the capital gains tax?

thank you in advance!

[Mike S.]

@Brian Ellis

The 121 exclusion of capital gain of up to $250,000 single or $500,000 for married filing jointly requires you to have lived in the property as your primary residence for two years within the last 5 years. You can have rented it out for rest without any problem.