Capital gain tax 5 years rule question

[Rachid B.]

Hi everyone, 

I would appreciate if someone can answer this question for me.

I bought a house in Houston in March of 2012. We lived in it for two years and been renting it since.

I am selling my house next month which will make it 5 years and 8 months.

Can I qualify for exemption from capital gain tax?
Thanks in advance

[Dave Foster]

@Michael Plaks, @Dave Toelkes is right.  The three tests limit the look back to a 5 year period prior to the sale of the property.  It must have been the residence of the owner/taxpayer for a cumulative, not consecutive, 24 months out of the 60 months prior to sale.  

What will really bite is if the current reform proposal is approved that will increase to a 5 year residency period out of the 8 years immediately prior to sale.