We had a primary residence since 2010, and rented it out since 2022. Now I am considering selling it. I know the tax law says if used as primary residence for 2 years out of the past 5 years, then the capital gain tax exemption is up to $500k for married couple. In terms of timing, I wonder when exactly the property is considered as a rental.
In my case, we moved out to a 2-beds rental in June 2022 as we had a new born. My mom visited us at that time. She lived in our old apartment while we had a nanny with us. In Aug 2022, we listed the old apartment for rent, and rented it out in Nov 2022. In order to qualify for the tax exemption, by which date should I close the sale? June 2025 or Aug 2025 or Nov 2025?
Thanks in advance for the help!
