I converted my primary residence to rental property last year and plan to sell it within 5 years.
According to IRS in order to non-taxable gain on first $250K.
You do not have to report the sale of your home if all of the following apply:
- Your gain from the sale was less than $250,000
- You have not used the exclusion in the last 2 years
- You owned and occupied the home for at least 2 years
1. Does it mean the unit cannot be a rental for more than 3 years before it is sold?
2. After the unit becomes a rental, does 'personal use' day in between consider primary residence time? For example, if the unit has been a rental property on tax record for 3 yrs and 2 months before the sale but 4 months in between are for 'personal use', is the sale still qualified for non-taxable 250K gain?
