Is there an exception to this proration if the home was initially purchased and used as a primary residence? TurboTax asks in the interview the following:
"Did you use this home for anything other than your primary home? Let us know if there was any time after 2008 where you used your home for reasons other than as your primary home. Note: If you used your home for reasons other than as your primary residence after it was no longer your primary home select "No".
When you select "No" the TurboTax shows the entire capital gain as excluded. If you select "Yes" then it uses the proration for the non qualified use period. My initial answer to the TT interview question would be "Yes" however the note indicates that the answer should be "No" since it was first my primary residence then became a rental.
