Renting primary home before purchasing and capital gains exemption

[mailtimes1]

If I rented a home shortly before purchasing it as my primary residence, there was no break in time between my rental and closing on the home, does that time renting it count towards the 2 out of 5 year occupancy to avoid paying capital gains tax? 

[Coleen3]

No, you have to own it and reside in it.

Does Your Home Sale Qualify for Maximum Exclusion

The tax code recognizes the importance of home ownership by providing certain tax breaks when you sell your home. To qualify for these breaks, your home must meet the Eligibility Test , which is explained later.

How your sale qualifies.   Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if all of the following requirements are met.

• You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.
• You didn’t acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.
• You didn’t claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.