Many of you may know the home sale exclusion act which allows a $250k capital gains exclusion ($500k if married) if you lived in your house and owned it 2 of the last 5 years. My question is what happens if you rented an apartment for 2 years, then bought it, lived in it for a year, and then rented it out for 3. IN this circumstance you owned it for 4 years, but rented it out for 3, bbut have lived in the house for 2 of the last 5 years.would u qualify for this exclusion? Or would you have to move in and live in it for 1 more year. thanks!

You need another year, time renting to another owner does not apply.

It HAS to be your primary residence, including being able to qualify for homestesd exemption