Personal to Rental tax implications

[Jason Hill]

My wife and I are about to buy a house in another state to be our primary residence. I'll be moving there immediately however; my wife has to finish her graduate degree and will be moving down in May. That works out nicely as we will have lived in our current house 2 years as of Feb '12.

I plan on turning our current house into a rental, but, a plan B is always nice. If we decide to sell it at some point, I know that if we lived in it 2 of the last 5 years we don't get hit with capital gains. The problem is that I will be moving out before the 2 years. Our only saving grace is that my wife is on the mortgage as well.

My Question: With all the above in consideration if we sell within the time limits, will we be hit with capital gains?