TaxGuyBill
Level 15
04-18-2021
03:11 PM
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As Bob pointed out, if the home was not their Principal Residence on 6/30/2017, it seems they don't meet the 2-out-of-5 year rule.
In answer to your question, Line 19a of the Home Sale Worksheet should be "No" (assuming they did not use it again as their Principal Residence AFTER they had rented it).