Capital Gains and Losses
Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP
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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: https://www.irs.gov/publications/p523/ar02.html
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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