Irs code 121 and prorated

[Andy Liu]

Hello .

I sold a property at 2019, and the property was my primary resident for the first 2 years, then was a rental for the last 3 years .I was assuming that I met the requirements for code 121 , but my CPA said quote "Since the property was rented out after owner occupied, the capital gain will be prorated.  "

Is he correct or am I missing something ?

Thanks

Andy

[Basit Siddiqi]

@Andy Liu

Your accountant is incorrect - aslong as you lived in it for 2 years out of the last 5 and you lived in it before you rented it out - you are fine and it should be excluded.

If you rent it out and then you live in it is a different story - in this instance you would prorate.