Is this only for rental property which you convert to personal home? or does this apply to a personal home which you lived in for 3 years and then converted to a rental property 1.5 years ago.
I have a house I lived in as personal residence for 3 years and have since moved to San Diego and have rented it out for the 20 months. I am debating selling prior to next October to avoid paying capital gains taxes…. As long as I sell before October 1, 2009 I will have lived in the home 2 out of the last 5 years, but now I am worried that if I sell it next July, that I will have to pay taxes on the 6 months (Jan 09 – July 09) that I did not live in it, even though still in the 2 out of 5 window based on the new law. What is everyones take on this?
