I bought a home in 1990 for 80k, remodeled it in 2003, moved out of state and rented it out for ❤️ years then sold it for 290k. I have lived in it as a primary residence for 2 of the last 5 years, but the last almost 3 years it was a rental.
Is there a way to avoid capital gains tax? I calculate gains to be about 110k.
I had it in TurboTax as rental property and am trying to sort through it in TurboTax.
The IRS has a provision that can help homeowners avoid capital gains on the sale of their primary residence.