My wife and I had to relocate in 2014 due to employment. We had planned on moving back so we choose to rent out our town house. It now looks like we will not be moving back so I would like to sell it but apparently capital gains tax exemption requires that it be a primary residence for 2 years in the last 5. We lived there for 4 years before moving and have been gone almost 3 years now. I would sell it now but I can't kick my renters out without a couple months notice.
I've heard that in some situations you can prorate the exemption especially in the case that a husband and wife lived their for a certain period of time.
Someone also mentioned I might be able to do a 1031 exchange but I can't find information on whether I can sell and house and put the proceeds into a new primary residence which I what I need to do.
