@Opus 17 Absolutely appreciate your detailed reply! Thank you!
1. Correct, i understand that part
2. I'm thinking because I plan to rent it out, it no longer is a personal home? but i do see your points below are much more to consider...! thank you!
Especially: (If you miss the 3 year window by even one day, then all the capital gains from sale of home #1 will be taxable. So you will have to have a conversation with yourself around the 2 year mark, is renting profitable enough that you are willing to rent long term and forego the capital gains exclusion, or would you rather sell while you still have the exclusion, and invest the money somewhere else.)
This is essentially the struggle I am having! Is it that after the 3 year window that I am not living in Home #1, it officially becomes an income property? I do plan to move back in around the 2-3 year mark, and thats why the hassle.
Basically, some major construction will be going on the next 2-3 years. Because I am home often, this will impact my life a great deal. Home #1 is in a prime city location, and would be easily rentable despite the construction situation. During this time, I plan to purchase Home #2 to live in until the construction is completed and I am able to move back. I then will rent out Home #2.
I am just concerned about possibly losing interest of moving back altogether (I hate moving!), and abort that plan, and just sell Home #1. This is why i am considering if my best bet is to sell and buy, or keep and buy.
Thank you again!
