[foreward: not real name, created for number crafting]
BLUF: Complex situation regarding sale of primary turned rental, passing 2 of 5 year test with 10 extension due to military service, but sale occurring 9 months after retirement [and end of qualified extension]
Hello, I have a home that I am in the process of selling [est sale Jun 22]. I anticipate that my net gain after mortgage payoff will be around 145,000.
I purchased a property as primary residence in 2008, then received military orders for transfer in 2010, at which I converted to rental property. I had resided in it for more than 2 years.
I have retired Sep 21, after 20 years.
Am I able to claim capital gains exclusion based on 2 out of 5 years [with 10 year extension]?
My logic, the 10 year suspension would have ended when I retired, and began 10 years prior [Sep 11-Sep21], if I use the date of sale in June of 2022, which would push the 5+10 years all the way to June of 2007, how would I claim Capital Gains Exclusion?
