(1) The sale or exchange and the circumstances giving rise to the sale or exchange are proximate in time; (is 3 years proximate or not?)
Because your circumstance doesn't meet a specific "Safe Harbor", you are subject to the list of factors that Mike pointed out.
In my opinion, there is no way that the IRS would consider renting it out and waiting three years to sell the property as "proximate". For that matter, it probably would be most like five years, because the "circumstance" (working from home due to Covid) likely started in early 2020.
