I feel like I understand what's been said here and read IRS 523 but read on another forum something that I'm not sure of.
I bought at house and lived in it for 14 months. I got a new job across the country, moved, and rented out the house for 20 months. Now I'd like to sell.
My understanding, from the worksheet in 523, is that I can take 54% of the exemption (14/24.)
But I read elsewhere online that, since I am renting it out prior to the sale, it is 100% a business property and subject to 100% of the capital gains tax. That's not how it looks to me based on 523.
Any guidance would be appreciated prior to selling so I know what to expect.
Thanks,
Eddie
