Primary residence -> Rental -- capital gain issues?

[George P.]

Hi forum!!
Just to make sure I understand the process...
If the property has been a primary residence for 5 years (purchased for 100, now worth 210), and then becomes a rental FRBO for another 5 years with say no change in value, would the property owner have to pay capital gain tax on the 110 that the property gained during the first 5 years when the property was the primary residence?

Thank you!!

[J Scott]

Originally posted by Bryan Hancock:

My understanding is that it has to be a primary residence for 3 of the last 5 years...

Just a minor correction...it's 2 of the past 5 years:

http://www.irs.gov/publications/p523/ar02.html#en_US_publink1000200713