Section 121 Capital Gains Exclusion

[Alex Freelove]

Tax related question on the Capital Gains Exclusion.

- I purchased my first primary home in Feb ‘17.

- I lived in the house until July ‘19 (total 2yrs 5months)

- It has been a Rental from July ‘19 to now.

- Roughly $250k in equity.

If I sold it right now, am I eligible for the Exclusion? Or does the home need to be my current Primary house in order to reap the exclusion benefits? (Obviously I will be asking my CPA before making any decisions)

The IRS.gov site says “If you have a capital gain from the sale of your MAIN HOME” but then says you are eligible “if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale.” Which I have.

https://www.irs.gov/taxtopics/tc701

Does anyone have some insight on this topic?