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Get your taxes done using TurboTax
The link (law) you reference only pertains to business property being sold to a related person/entity. If a rental property is sold to a related person/entity, then the portion of the gain to the transferor that is allocated to depreciable property is taxed at ordinary rates. So the rental property is sold to a related entity, the portion of the gain for the buildings (depreciable) is ordinary but the land (not depreciable) is not.
If the property is not business to begin with this law does not apply.
You will enter the sale of your home and claim the exclusion in the "sale of home topic" as a personal/capital asset.
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‎April 1, 2021
9:28 AM