Many thanks again. Just want to clarify - Home A was only rented from Dec 16 to Oct 19 so it is rented less than 3 years. Since Oct 19 it is not used by anyone other than me and my family. I even paid all utilities on the home.
Secondly, you mentioned, quote "Even if you had qualified to exclude the gain on both homes, you can only use the exclusion once every two years. And even if you did qualify to exclude the gain on home A, you must still deal with the depreciation and pay depreciation recapture." I have never used this exclusion on taxes so how do I use it? I do not mind paying taxes only on depreciation recapture.
