What Is The 2 Out Of 5 Year Rule?

The two-out-of-five-year rule is a regulation that specifies you must have lived in your house for a minimum of two out of the past five years prior to the date of sale. This rule was established by the National Association of Realtors. This sum may be excluded from your taxable income if you sell your house; however, you may only make this claim for an exemption once every two years.