Can I reset the tax basis on my home before I rent it out?

Question

I recently bought a new house and am considering renting my current home out for a few years. My understanding is that if I rent it for more than 3 years I have to pay capital gains when I sell it for all the gains I've ever made on the house. I currently have about $300,000 in gains on the house which are tax free today (because I'm still living in it). Is there anyway I can capture that gain (obviously without selling the house) so I can reset my tax basis before I rent the property out for 5 years??

Answer 1

No, sorry.  The exclusion applies only to a house you have lived in as your main home for two of the previous 5 years before the sale.

Answer 2

no, you can't do that.

where are you going to live while you are renting it out?

can you move back in after 3 years for 2 yrs and then sell and get the 250 exclusion?

Answer 3

No.

Answer 4

No there is no legal way to reset the value.  

However, you can simply rent it for three years and sell it while you still qualify. Or you can rent it for 5 years and then live in it again for another two years. Or you can simply pay the tax.

Hope this helps