Carl
Level 15

Get your taxes done using TurboTax

The look back starts from the closing date of the sale.

For conversion to rental:

If you moved out on or after the 16th of the month, that entire month counts as having lived in it as your primary residence.

For conversion to personal use:

If the last tenant moved out on the 16th or after, (or you converted the 16th or after) that entire month is *NOT* considered as the property having been your primary residence.

. If I sold the rental property on Oct 30, 2020, would I meet the 2 out of 5 year rule in order to take exclusion?

If you moved in on or before Nov 15th, 2018, and it remained your primary residence up to the closing date of the sale, it would qualify for the exclusion.

If you moved out on or after Oct 16, 2017 and it was your primary residence from "at least" Oct 15, 2015 or before, it would qualify for the exclusion.

 

Understand how the $5K exclusion works if you're filing joint. It's perfectly possible for you to qualify, but not your spouse (and vice versa). That's why the program will ask these questions for both tax filers if filing a joint return.