rbynaker
Level 14

@Just-Lisa-Now- wrote:

thank you!

I have people with long term rentals that think they can move in for 2 years and sell and get the full exclusion, Ive been telling them they need to be there the full 5 years for that plan to work, so I AM giving correct advice.


No, they needed to have moved in before 1/1/2009 to exclude all of the gain (or as Bill said, not move back in at all and still meet the 2-out-of-5 year rule).  Otherwise there will be a period of non-qualified use resulting in a prorated gain.

Rick