1. yes.
2. to use the exclusion, you must have lived in the home for 2 out of the past 5 years (731 days or more, the days do not have to be consecutive). As a practical matter, that means you have 3 years to sell after moving out. However, you will pay depreciation recapture on any depreciation you claimed or could have claimed during the rental period, before the exclusion is applied.
3. You can list rental expenses begining when you make the property available for rental. For example, if you list it on November 1 for immediate occupancy, you can start your expenses on November 1. If you list it on November 1 with a start date of December 1 (to give yourself time to move out), then its not available until December 1.
However, if you never actually get any rental income because no one rents it while it is listed, you may or may not be able to deduct the expenses as a rental loss. That's a more complicated question than I have knowledge for.
