Thank you. Yes, my wife owned the house since 2009. The renters moved in May 2013 and are moving out May 2017. So if we sell the house, we would calculate the % of the exclusion that we would get by taking the time occupied by us and divide by the total time owned. So the % that we actually lived in the house would be the % of the exclusion we would get, correct? So basically if total years of ownership is 9 and 5 of those years we lived there, we would get 5/9= 55% of the exclusion? So we are married filing jointly, so we would have ($500,000 X .55)= $275,000 of the gain excluded from capital gains? I will get a CPA, just wanted to run this by you guys first to get a little educated.

So (assuming tax law does not change), the longer we live in the house from here on out, the larger % of the exclusion from capital gains we'll get, right?