You can exclude up to $500K of gain from the sale of your personal home if the home was the primary residence for you and your spouse and you lived in the home for 2 out of the 5 years before the sale. We often see taxpayers move out of their primary residence and then rent the home for several years before deciding to sell. If the taxpayer wants to take advantage of this $500K gain exclusion, then it is important to sell the home within 3 years of moving out so that the taxpayer doesn’t violate the “2 out of 5 years” rule. So, the usual advice is to move out, rent the home for 2.5 years, and then sell the home within 3 years of moving out unless you want to keep the rental for a very long time (and don’t mind converting tax-free appreciation into taxable appreciation).