I lived in my primary home, CA from 10/2012 until 11/2017 and moved to TX. CA Rental 1/1/18 to 6/9/21. Am I eligible for the Exclusion? (IRS 121). Any covid relaxation?

[Mike9241]

you did not give us the date of sale if it has in fact been sold. assuming you sold it on 6/10/2021 you would not be entitled to any exclusion since it was not your principal residence for 2 out of 5 years before the sale.

based on court decisions no partial exclusion for selling for health, change of employment or unforeseen circumstances would be available because the sale is more than 3 years from the time you moved out.  you will also have to pay section 1250 recapture taxes on the depreciation taken or should have been taken during the rental period. 

[bsi.srini]

Thank you, so much. I have not sold my home yet.

[tagteam]

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@Mike9241 wrote:

based on court decisions no partial exclusion for selling for health, change of employment or unforeseen circumstances would be available because the sale is more than 3 years from the time you moved out.

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Do you have cites to any of these decisions?