Based on all the replies, My main question is that do I report this as Sale of Primary Residence OR Sale of Asset ? My main worry is whether IRS will see this as a taxable capital gain of asset from Jan 2019 to Nov 2019 ? If so how do I even formulate what is the asset cost basis as of Jan 2019 ? I am really hoping I can avoid the complications and that I can just show this as sale of primary residence and all capital gains excluded because this was my first and only primary home and no other home sold ever in my life. And then just report all the rental income in TT and be done with it. If a few experts concur on this, then I will do just that. I contacted a CPA and they had a very expensive fee to even answer this question. I just have a W-2 and dependents to go on the MFJ form. As per CPA it will take 2 hours of consultation time to go over all the improvements done to the home in 6 years and they must prepare the taxes to even answer this question- So a thousand dollars fees for the taxes. Please advise.
