Thank you for your prompt response! I understand that I must consider depreciation in relation to my home sale price for the rented rooms. However, in terms of capital gains, my primary residence and rented rooms are in the same dwelling. Section 121 states: "Under 1.121-1(e)(1) , no allocation of the gain from the sale or exchange of property is required if both the residential and non-residential portions of the property are within the same dwelling unit."
https://www.irs.gov/pub/irs-drop/rr-14-02.pdf
page 8, 4th paragraph
Since my rented rooms and primary residence are in the same dwelling, wouldn't "no allocation of the gain" apply?
Thank you,
