Investors & landlords


@ben.walke wrote:

My main question is, am I allowed to take the max gain exclusion (after deprivation, up to 250k, single) even though I rented rooms? 


You can take the maximum exclusion of $250,000 but you cannot exclude the amount of gain due to depreciation deductions taken (or allowable), which is called unrecaptured Section 1250 gain.

 

Example: You have a total of $250,000 in gain and took $10,000 in depreciation deductions = $10,000 is taxable gain.