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if after purchase you used the home as your primary residence until you converted to rental then only the 5 years ending on the date before the sale are relevant. The appraised value is irrelevant. You will qualify for the home sale (gain) exclusion  (HSE) even though the home was rented out as long as it was your primary residence for 2 or more of the 5 years ending on the date of sale. Note that as a rental depreciation should have been taken, that is not eligible for the HSE. if you did not take depreciation run to a tax pro because even if you didn't you must pay income taxes on the amount you should have taken. .

 

if it was not used as your principal residence after purchase then there is nonqualified use that will change the results. only periods after 2008 are counted in determining nonqualified use.

 

for example assume full years

2000-2010 used as a vacation home (Non qualified use only 2009 and 2010)

2011-2018 used as a primary residence

2019-2019 rental

2020 empty sold 12/31

years of nonqualified use 2

years of ownership 21

2/21 of any gain would not qualify for the HE