Who must live in a house to avoid capital gains for 3 in 5 years rule?

Question

I have a house I'm going to rent out for about 5 years. I have a lot of gains on the house now. When my son goes off to college I was thinking of doing a like-exchange to buy a house near his school. He could live in the house and rent out some of the rooms. Since he is my dependant can I then sell the house when he graduates and avoid the capital gains?

Answer 1

No, you the owner need to reside in the house.

Answer 2

No, you will have to pay the capital gains on the house.  You must personally live in the house for 3 in 5 years to establish it as a personal residence to avoid paying capital gains.

Answer 3

No, the owner - you - would have to live in the house to get the capital gain exclusion that you are referring to.  It doesn't matter that a dependent live in it or not.  BTW, it is 2 of 5 years, not 3 of 5.