We sold our primary residence of 20 years in 2020. In 2013 we bought a condo for casual use on weekends throughout the years. We did rent the condo for 1 year during time we owned it. After selling our primary residence in 2020, we moved into our condo and lived there for 12 months prior to selling it and building our current home. So, the question is about the treatment of the sale of the condo. Because we did not live in it as our primary residence for 2 years must the gains be treated as long term capital gains? We did however live in it for many weekends throughout the 8 years we owned it. Must this condo sale be treated as capital gains or can the gains be included into the $500K exclusion?
