My wife and I purchased a house five years ago, utilizing it as our primary residence for 30 months, subsequently, we established a rental business and leased it out (including Airbnb) for an additional 30 months. Assuming the house appreciated by $100,000 each year, if we sell it now, realizing a total price gain of $500,000 (ignoring depreciation payback for simplicity).
Are we eligible to claim the full $500,000 exclusion, or are we limited to claiming $250,000 since 30 months were used for the rental business?
Thank you.
