We bought a house in 8/2014 for $292000 as our primary house. We lived in the house until 9/2019 as we bought another house. We then used the house as a rental property for less than a year, and sold it in 7/2020 for $400000. Now, it seems like the Turbo tax is calculating about $93000 that we made on this house as taxable gain on a business (in section: "Sale of Business Property") although we only rented it for 10 months.
I was told that if we live in a house for more than 2 years, we can exclude the gains from taxes. Where are we doing this wrong?
