Hello,

In 2008 we purchased a coop apt. in NY for our daughter to live in. We added our daughters name to the "deed" (it was a coop apt so she was a JT in the shares we owned) in Dec 2014. She lived in the apt through 2013 when she moved to another apt in the bldg (we then started using it as a 2nd home). We sold the apt 7/20/2017. Question 1: Is the Cap Gains exclusion determined as of the sale date or for the 5 years before the sale. In other words, does the 5 years use requirement start 7/20/12 or 1/1/12? If it starts 1/1, she meets the 2 out of 5 year requirement (her principal residence for 2012 & 2013). Question 2: Does the fact that she didn't acquire an ownership position until 12/2014 affect this? Thanks in advance for your time.