I am filing back taxes for a client. He was living in his principal residence (P1) in 2011. He purchased a property(P2) in 2011. He moved into the newly purchased property (P2) at that time and moved out of his principal residence (P1) and began renting it. He rented P1 until 2017. At which time he sold P2.
He never filed an election to change the status of the P1. He has an appraisal on P1 for 2011 and 2017.
The gain was higher on P1 than P2.
Can he - 1.Keep the PR status on P1 and claim the gain on P2? If so, does he have to file the
or 2. File an election to change PR to rental in 2011 and then again in 2017 back to PR and
claim the gain on P1?