@lucyx513 , assuming that you still need help with this situation/plan:
(a) You have owned ( at least one of you ) and used the prop. A as your main residence ( both of you ) for at least 730 days,
(b) you have not used the capital gain exclusion in the last two years
then the capital gain exclusion is valid ( 250,000 per filer i.e. 500,000 for MFJ ). This 730 days usage is with a look back period of five years from the date of sale conclusion/closing. Thus if you moved to a new prop--B, made that your main residence Jan1st of 2026, you have approx. two years to sell the prop.A ( even if rented out till sale ) and still meet the exclusion criteria.
Note if you rent out then whether you recognize or not allowable depreciation on Prop. A is going to reduce your basis in the prop., thereby increasing your gain. Also that portion of the gain due to accumulated depreciation is treated as ordinary gain ( taxed at your marginal rate), the rest is still eligible for capital gain exclusion.
Thus it is a careful managing of events.
Does this make sense ? Is there more I can do for you ?
