To get the final yes or no you need to talk with your CPA, but generally speaking as the law is written now as long as you have owned the home for 5 years which you have, and have lived there for 24 months in a row prior to renting you should be fine. The rule was written to proctect people that had been relocated for work reasons. Best
Diane got the answer in before me and has the best answer, I too have that understanding but as all the rest say, it really is a question for you tax professional.
Sorry, to be so vague but it really is the truth, of course if you need anything else, anyone of us would be very happy to help you.
I agree with Chris - real estate agents should not answer tax related questions! If you don't have a tax consultant there are many good sites to research tax questions - I like the Bankrate.com site. The link below will take you to a report on capital gains and home sales. Good luck!
http://www.bankrate.com/finance/money-guides/home-sale-capit internet sites that you might search for your answer as well.
A good agent can give you a better idea of prices is your area now, and anticipated prices for several years aheand. Best regards, Terry Bell, Realtor, California
Please consult a real estate tax accountant for more definative information regarding your specific situation. Hope that helps! Have a great day and the best of luck to you.
Diane Wheatley, Broker