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Updated about 4 years ago on . Most recent reply
2/5 Year Rule Primary Residence Converted to Rental
I purchased my house as a primary residence back in July 2017, lived there for just over two years (until Sep 2019), then moved out due to military re-assignment. I then rented the house out for slightly over one year, and am about to sell it. Since I owned and lived in the house for at least two years, does it qualify for capital gains tax exclusion under the 2/5 rule? All the examples I found were converting rentals to primary residences, wasn't sure if the same applied the other way around as long as I met the 2 year ownership/residence requirement.
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@Sharon Li you qualify, and service members are actually eligible to extend this exemption to 15 years, provided you're still in the military!