Would anybody have advice regarding how to convert primary residence into rental without paying capital gains tax?
You've already been given that information above. Tax laws states that when you sell a home if it was your *primary* residence for at least 2 of the last 5 years you owned it, then you can exclude from capital gains:
- The first $250,000 of gain if filing single or MFS.
- The first $500,000 of gain if filing a joint return and *BOTH* you and your spouse meet the "lived in" requirement.
You must have lived in the home as your primary residence for at least 24 of the last 60 months you owned it. The months lived in do not have to be consecutive either. Also, don't mistake the requirement by thinking you are required to own it for 5 years. You are not required to own it for 5 years. If you owned it for only 25 months that's fine so long as it was your primary residence for 24 of those 25 months.
To be more precise, if it was your residence for at least 730 days of the last 1826 days you owned it, you qualify for the exclusion.
