What is the minimum amount of time that must be spent in a primary residence to claim the capital gain tax exemption for a sale of the home?

To claim the capital gains tax exemption on the sale of a primary residence, an individual must have owned and used the home as their primary residence for at least two out of the five years preceding the sale. This is often referred to as the "2 out of 5 rule."

This provision is designed to allow homeowners who have lived in their homes for a significant amount of time to benefit from the sale without incurring capital gains tax on the appreciation of the property, up to certain limits. The primary purpose is to encourage home ownership and to provide relief to taxpayers who may otherwise face a large tax liability after selling their homes.

Thus, the requirement of two years of residence within a five-year period is the crucial factor in qualifying for the exemption, making this the most accurate choice in the context of the question.