Capital gains tax laws around owner occupied property turned rent

[Ankit A.]

Hi,

I am living in the house I purchased back in October 2009 in Dublin, CA. I intend to move out of the house and rent it out for the foreseeable future. I understand that if I sold the house within first three years of moving out, I would not have to pay property gain taxes over 250K as a single person.

However, I also heard from an agent something into this effect that if I don't sell the house within the three years and even if I moved back in after three years and stayed for more than three years the property gains cap maybe reduced to a smaller amount than 250K. I am not quite sure what the laws are around this scenario.

Can someone please clarify or direct me to a place where I can find more information around this?

Thanks in advance.