Carl
Level 15

Investors & landlords

I have a 2 family home that I have lived in 1 unit since I have purchased it.... I am ok to give up rent for 2 years so that the whole house can qualify for the exclusion

No. Only 1 unit can be you primary residence at any one time. So you can only take the "2 of last 5" exception on the one unit that was your primary residence. Additionally, you can only take/qualify for the exclusion on one primary residence every 2 years.