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Updated over 7 years ago,
Confused about capital gains exemption
Do you pay capital gains taxes when you sell in a house that you lived in for two years and then rented out for three? It fits the 2/5 year rule but not sure whether it fits the "primary residence" part. Does the rule assume you'll rent it for the other portion of the 5 years or that you'll leave it vacant in order to call it your "primary residence"? Thank you!