Greetings! I have read Section 121 backwards and forwards.
I need help understanding the 2 out of 5 year exclusion for capital gains.
My wife and I bought our house in January 2018 and used it exclusively as our primary residence for 2 years and 1 month. We sold it in February 2020 for a gain of $400,000.
Since we lived in it as our primary residence for 2 years do we qualify for exclusion of capital gains tax? Or did we need to own the residence for a total of 5 years before getting that exclusion?
Thank you for your help!!!
