DianeW777
Expert Alumni

Investors & landlords

It depends and this particular situation could have different view points. Based on example 1. above, the period where you live in the home while at the same time rent out a room is subjective. My belief is that you could still receive the exclusion without using days rented, however you would need to recapture any depreciation used on your tax returns if this is a 'for profit' rental. 

 

In your situation you could arrive at two selling prices, one for sale of business property and the other for sale of home. If you actually sell the home the details at that point will be the decision maker. Currently, the fact  you only rented it for four months as of now would put you into the first example without 'nonqualified use'

 

@hno4 .

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