@Bryan46 wrote:
So I don't have to possess the property for 5 years in order to satisfy the 2 years in the last 5 years condition right?
Correct. You have to own the home at least 2 years, and live in it as your main home for at least 2 of the last 5 years. You also can't use the exclusion until 731 days (2 years) after the last home sale when you previously used the exclusion.
So the date you have to wait for to sell your home to qualify for the exclusion will be determined by when you purchased the home (you're covered there), or when you moved in and started using it as your main home (if that happened on a different date), or when you sold your prior home (if you did), whichever is later.
