2 out of the last 5 rule?

[Kenny Smith]

Hey all,

I am considering on selling my condo next year.  At the time I sell it, I will have lived there 1 out of the last 5 years and renting out since moving out.

One of my CPAs said I can still be exempt up to $125k and not the $250k.  I thought it was all or nothing deal.  Meaning, if you don’t live there 2 out of the last 5 years, you’re exempt nothing.  If you hit that mark, you get the full exemption.

Anyone have experience with this, or can shed some light?  

Thank you much!