Capital Gains tax on primary residence that has been rented out

[Teresa Rad]

Hi, I have question about what is considered your primary residence. I own an apartment that I lived in for about 8 years before moving out to rent a home with my new husband (apartment was too small for us both) while we save to buy a home together. 5 years later, I want to sell my apartment and use that money to buy a home together, but now I have to face the capital gains tax implications.

Since I moved out but did not buy a second home and instead, my husband and I have been living in a rental - is the apartment that I own considered my primary residence (since it was for 8 years prior) and therefore, can I avoid or minimize the capital gains tax? It seems at odds with the fact that we don't own a 2nd home but live in a rental, but maybe that doesn't matter? Would appreciate if anyone has any advice about this situation.

thanks!