Primary residence exlusion on land that should be developed

[Daniel L.]

I just got my first deal under contract as an owner occupant...There's a good chance I'll be buying an adjacent lot because there’s compelling value in combining lots in this area and building condos. I may even buy a 3rd adjacent lot. I'm working with metro planning and know the combined lots would rezone to one of two types. I may even be able to get a definitive answer from planning dept or a civil engineer that I intend to have do a feasibility study on the parcels. It's my understanding that subdividing/rezoning/building a new structure all reset the clock on the 2 year primary residence tax exclusion for gains. As such rezoning via quitclaim for example would start the 2 year clock all over. I’m wondering if there’s a strong argument to defer rezoning until absolutely necessary/leaving it up to prospective developers it gets shopped around to. To start the 2 year primary residence clock right away…It's been suggested to me to come to an agreement with whatever development group the land is to be sold to that they provide the lionshare of compensation for my owner occupied lot and a nominal amount for the non-owner occupied parcel. I don’t need to tick off Uncle Sam and want to stay above board so I appreciate any insight that can be offered!