RobertB4444
Expert Alumni

Investors & landlords

You have to live in the house for 2 out of the last five years to qualify for the exclusion.  So 2021 and 2022 will count. 

 

However, you will still have to pay tax on the depreciation recapture for the three years that the house was a rental.  So you will be able to exclude up to $250,000 of gain from taxable income but the amount that you took as a deduction for 2022 and 2023 and whatever part of 2024 it was a rental will be taxed as regular income.

 

@Iris99 

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