You must have lived in your house as your primary residence for 2 out of the
last 5 years. Here are a few scenarios.
After 2 years, sell and find another house then repeat.
After 2 years, buy another house and then rent the first. After 4 years,
buy another house and then plan to sell the first so it closes before the
5th year ends. Continue this process and making sure you never break the
cycle.
If you have some rentals and are just now aware of this rule, move in to one
and then sell 2 years later. Depending on yoru finances and needs, just
keep moving in to the properties and wiping out the taxes.
Of course tax laws change and you should consult an accountant to verify
these ideas.
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I've often heard of those who rehab homes for a living do just that, i.e. – live in a house as they rehab it one room at a time, build equity naturally over the 2 years and sweat equity in addition, then sell tax free after 2 (or more) years. If you don't mind moving often, it's a great plan, because the taxes can be brutal (getting more brutal soon?).