If there was at least 2 primary residence years within 5 years of the sale date, the home will qualify for the full gain exclusion on all of the gain but the amounts that you deducted for depreciation while the home was being rented out.
- On the question "Did You Use This Home for Anything Other Than Your Primary Home?" you need to answer No
- Continue to the screen labeled "Depreciation After May 6, 1997" and answer yes.
- On the following screen you will enter the depreciation that you claimed on the rental.
