I rented the house i purchased for two years, then I moved in as my primary residence. If I live in the house for more than 5 years, say 6 years. When I sell the house, do I still need to prorate the capital gain based on the ratio of "rental time" to "owner time", or can I receive full exclusion ($50,0000)?
I asked this because in Section B, it is stated "...when neither you nor your spouse (or your former spouse) used the property as a main home, and that period of non-use occurred during the 5-year period prior to the date of sale and before the time when you or your spouse (or your former spouse) used the property as a main home.*
In my situation, the rental time did not happen within the 5-year period prior to sale.
