Hal_Al
Level 15

Investors & landlords

Yes, but you need to rigidly meet the 2 year (730 days) rule. So, for example, if you moved out on Sept 1, 2014,  you need to sell (close on sale) before Sep 1, 2017.

As Carl already indicated, depreciation recapture will be tax (at ordinary income rates, not  long term capital gain rates). But the rest of the gain is excludable.