Thank you for understanding my situation and trying to help.
My concern with your suggested workaround is that it requires me to enter days of nonqualified use. However, there are zero days of nonqualified use because the rental occurred after we completely moved out of our primary home, and the home was sold while still in the section 121 exclusion period.
I am also concerned that if I follow this workaround, the passive losses from the rental from 2025 (and carryover passive losses from 2024) will not be released to offset the depreciation recapture amount.
Please advise.
