what is the 2 out of 5 year rule 
the 2 out of 5 year rule states that homeowners must have lived in their home for two out of the last five years before the date of sale in order to avoid or reduce capital gains taxes on the appreciated value of the home the bottom linea 5 year rule can apply to a number of situations but is most commonly used when referring to how you withdraw funds from an ira for guidance on the best ways to withdraw money from your tax advantaged account consider consulting with a financial advisor 