Do I qualify for the military stop clock exclusion for the 2 of 5 year use test on sale of rental property even if I do not met the requirements for the look back test?
I sold primary residence in April 2016 due to military orders and took the capital gains exemption on 2016 tax return. I want to sell a rental property that I bought in 2004 and lived in until 2009, then rented out until 2017. All of my time away was under military orders. I qualify for the stop clock military exception for the 2 in 5 years test. However, I do not meet the look back test since I claimed a capital gains exemption on sale of home less than two years ago. Can I still use the military stop clock exception to claim capital gains exemption on 2017 tax return?