I'm trying to figure out if selling a home from a prior duty station that has been rented out is considered a sale of a "rental" or "main home" and how to get TT to get me to the capital gains exemption.
I am trying to apply my "look back" of when the 2-of-5-year clock starts ticking and I keep bouncing between main home and rental.
Timeline to help explain:
8/2009 - Bought property
2/2012 - Moved (and started rental)
8/2015 - Retired from military
2/2020 - Sold property
My understanding is that I can delay the start my 2-of-5 clock by the time I was in the military from the sold date (placing the start of the look-back date at 8/23/2016). Looking back from that adjusted sold date, I come up with 5 out of 24 months of shelter for the gains.
Which really boils down to: How do I account for and take advantage of the capital gains exemption?
Thanks,
Scott
