Deductions & credits

In the prior question, you wrote: "Then I moved back in for 1 year before selling it."

Your situation is somewhat unusual, as this was your primary home, then became a rental, then again your primary home.

"Did you use this home for Anything Other Than your Primary Home?"  you would answer NO due to renting it "After" it was personal use home. 

 I am going to EDIT the prior answer.  Thank you for coming back in and asking about this. 


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. 

2. Temporary absences due to a change in employment, health or unforeseen circumstances.

3. Any period (not to exceed 10 years) during which you or your spouse (if married) is serving on qualified official extended duty as a member of the uniformed services, the Foreign Service, the intelligence community, or as an employee or volunteer of the Peace Corps.


Here are a few examples:

1. After owning and living in it for several years, you move out of your main home on August 1, 2016, and rent it out for a year before selling it. The time it is rented out doesn't count as "nonqualified use" because it is AFTER being used as a principal residence.

View solution in original post