No. A personal residence only has preferential treatment for 2 years, otherwise, it is capital gain. The rental property was placed in service after being personal use so all of the house and land was rental property the last -14 years, I believe. The big concern for you is not percentage used as personal, that is irrelevant. What matters is what happened when you made the conversion.
Did you use your basis or was the FMV lower when you switched to rental use?
- If you used your basis, then there are no actual adjustments to make for the program to properly calculate the gain.
- If FMV was lower than your basis, you will need to adjust the cost basis to capture the extra basis that could not be depreciated.
See Publication 551 (12/2022), Basis of Assets - IRS
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