To exclude your gain, you must have lived in the home as your main home for at least two of the past five years prior to the date of the sale. Two years means 730 days. The days do not have to be consecutive, but the time that you used the home as your main home must add up to 730 days out of the past 5 years.
Otherwise, the capital gains are fully taxable. You will also owe NY state and city taxes on the gain (but not your other income) on a New York non-resident tax return. When you prepare the nonresident tax return, TurboTax will ask you to manually allocate all of your income sources to the different states. Pay attention to the allocation, because TurboTax can’t guess for you. You don’t want to accidentally pay NY tax on non-NY income.
