Critter-3
Level 15
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Investors & landlords

The 2 of 5 year rule is hard and fast so you cannot exclude any of the gain  UNLESS you are active duty military then the rule extends to 10 years.  Either way the depreciation allowed or allowable must be recaptured. 

 

Read up in the IRS pub 3 :  https://www.irs.gov/forms-pubs/about-publication-3

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