Carl
Level 15

Investors & landlords

Basically, if you lived in the home for at least two of the last five years you owned it, counting back from the closing date of the sale, then you qualify to exclude the first $500K from capital gains tax. ($250K if filing single or MFS).  Now understand that even with that, you will pay tax on the recaptured depreciation no matter what. There is no exception for that.  So if you move out (weather you sell it or not) before July of 2019, then you do not qualify for any capital gains tax exclusion.