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Ask Christopher B, Esq. Your Own Question
Christopher B, Esq.
Christopher B, Esq., Tax Attorney
Category: Capital Gains and Losses
Satisfied Customers: 2643
Experience:  associate attorney
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Sure, thanks for offering! My wife and I are going to sell

Customer Question

Sure, thanks for offering! My wife and I are going to sell my home for about 250,000 gain, and lived in the home the entire time. For most of the time we lived in this home, we rented a room to a student. We didn't depreciate the home, or portion of the home (not sure why TuboTax didn't calc for depreciation over the years). Anyway, we would be entitled to the full exclusion because the part of the home that was rented was not a completely separate space. Would you concur?
JA: I love the idea of making big money with investments, but there are so many things that could go wrong. The Accountant will be able to help you. Is there anything else the Accountant should be aware of?
Customer: Lived in the home an entire 5 years, so we meet the 2 year test. Took about 600 in depreciation in the home, so that would be recaptured at the sale. Other than that, the roommate rental wouldn't disqualify us from any of the gain exclusion, correct?
Submitted: 19 days ago.
Category: Capital Gains and Losses
Expert:  Christopher B, Esq. replied 19 days ago.

My name is ***** ***** I will be helping you today. Thank you for your question and for using Give me a bit and I will draft you an answer.

Expert:  Christopher B, Esq. replied 19 days ago.

Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if the following is true:

(1) You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.

(2) You did not acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.

(3) You did not claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.

"If the business or rental space was physically part of the living area of your home, such as a spare room used as a bed-and-breakfast bedroom or attic space used as a home office, your business usage does not affect your gain/loss calculations. " See link for IRS rules:

To answer your question you would still qualify as long as it was your main residence even if you rented out a room.

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