My spouse and I purchased a house as our primary residence, and we rented out two bedrooms (60%) of the house for 2 years. Then the tenants moved out, and we lived in the house just by ourselves for 6 years. My question is: when we sell the house at the end of the 8 years, if we have $200k capital gain, how do I calculate the proration of the capital gain out of the full exclusion ($50,0000)? Is there any DIFFERENCE between renting the WHOLE house out for the first two years versus ONLY rented out 60% of the house while still lived in it as a primary residence?
