Understanding Capital Gains

[Lee Griff]

I have searched the previously posted capital gain post and could not find a straight answer.

I'm inquiring upon the 2 to 5 year (long-term capital gains) window that you have to be a primary homeowner to exclude or discount capital gain tax.

- I understand that the capital gain tax is applied to the profit that you make from selling the house.

- I understand that you have to live in the property for 2 out of a five year period.

* Does this mean I would have to hold the property for at least five years? Meaning, live in it for at least 2 full years then rent it out for 3 years, or the option of living there for 5 years to exclude the capital gain tax?

*Can I buy the house, live in it for 2 years, then sell it and exclude capital gains?

Any closure to this question is greatly appreciated !