Yes, you seem to understand the rules. Your posted information is exactly what it means:
- Simply described, "nonqualified use" means any use other than as a principal residence after December 31, 2008. So, for example, use as a second home, vacation home or rental is considered "nonqualified use" beginning in 2009 or later. However, "nonqualified use" does not apply to time that falls into one of the following categories:
1. Periods of time after its use as a principal residence.
The explanation about how to report is correct and some of the gain will be taxable based on using it as a rental property for a period and as a home office deduction. Depreciation recapture is required.
@user17710097333
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