Military Capital Gains Exemption

[Chris Combado]

I have a home that I bought while I was active duty. I lived in it for 2 years prior to turning it into a rental property. After I moved out, I separated from the military. I am past the 5 year mark since living in it. Reading up on the 2 out of 5 rule that can be extended up to 10 years for PCS moves, does that also apply to separation? Looking to see if I can just sell and not pay capital gains, or if I'll need to 1031. 

Thank you!

Chris

[Jaime Duron]

Hi @Chris Combado! Thank you for your service as I was also in the military and recently retired. I would talk to a 1031 Intermediary and or a CPA to ask what their recommendations would be on the safe side. There is not must clarity, but guidelines to follow. I did a 1031 on the safe side, but found out later that I didn't need to do one, luckily the cost was only 1K. Hopefully, the little info I put out helped.