Investors & landlords

The "2-year" safe harbor is applicable to challenges buy the IRS as to whether a dwelling unit qualifies as property held for productive use in a trade or business or for investment.

 

See https://www.irs.gov/pub/irs-drop/rp-08-16.pdf

 

You can generally convert the property to your primary residence safely after that period of time, but you will ultimately be faced with recapture of depreciation and a reduced home sale exclusion as a result of the rental period.

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