Capital Gains on Primary

[Joe Mierzwinski]

Hello all,

I have been reading a lot about Capital Gains, but have been unable to find a topic that fits my current strategy.

My wife and I are on our 3rd primary residence fix & flip.  We held our 1st property for 3 years, our 2nd for 2 years, and this current one we are hoping to sell right after the 1 year anniversary of the home purchase.  We have occupied the house the entire time we have been rehabbing.

Question #1 is about tax implications. I believe I fall into the Long-term capital gains tax if I sell after 1 year but before 2 years. What I can't seem to find explicitly stated anywhere, is that because of my tax bracket (< $75,300 married filing jointly), our long term capital gains tax is actually 0% on our gains (no capital gains for some investors).

Am I correct in thinking that we will be treated as investors, and not as a dealer with inventory since this was my primary residence (so no self employment tax, or income tax on the gains)?  

Question #2: Although we fully intended to sell this home after one year, if we decide to hold the property and rent it for the next 4 years, then sell (cash out, not 1031), how are we treated at that point.  Since we will not have lived in the house for 2 of the past 5 years, do we remain in the long-term capital gains bracket?

Thank you in advance!