What happens to capital gains if I sell a property before I live in it for two years?

In many countries, including the United States, if you sell a property before living in it for at least two years, you may not qualify for certain tax benefits related to capital gains. In the United States, for example, there is a provision known as the "primary residence exclusion" or "twooutoffiveyear rule" that allows homeowners to exclude up to a certain amount of capital gains from the sale of their primary residence.

To qualify for this exclusion, you generally need to have owned and used the property as your primary residence for at least two out of the five years preceding the sale. However, if you sell the property before meeting this requirement, you may not be eligible for the full exclusion. The portion of capital gains attributable to the time you didn't meet the residency requirement may be subject to capital gains tax.

It's important to consult with a tax professional or financial advisor to understand the specific rules and regulations regarding capital gains taxes and residency requirements in your country or jurisdiction. They can provide guidance based on your individual circumstances and help you understand the potential tax implications of selling a property before meeting the residency requirements.