"You would need to sell (and close on) your NJ home within 5 years from January 1st assuming you used the NJ home as your primary residence for at least 2 out of those last 5 years."
If you became a Florida resident (for example) on January 1, 2024, then your 5-year period of "usage as primary residence" would end on that date for your NJ home. You would then have to sell the house within 3 years of 1/1/2024 in order to qualify for the capital gain exclusion.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
