cimmel
New Member

How do we treat the sale of a house we lived in for 2 of the last 5 years, but also rented?

We originally bought the house in 1999 for 128k.  We converted it to a rental in August of 2013 with a FMV of $155k.  The house sold for $169k in June of 2016.  The house was a primary residence just over 2 of the prior 5 years and we have used it as a rental and taken depreciation since putting it into rental service.  I have completed the section of "Sale of Business Property", but can't figure out how to get the capital gains exclusion for sale of a primary residence.