IRS publication 523 states in the section under Business or Rental Use of Home, "If the space you used for business of rental purposes was within the living area of the home, then your usage doesn't affect your gain or loss calculations.
Examples of spaces within the living area include a rented spare bedroom." I am correct to understand that renting out rooms in my house doesn't affect my eligibility for the exclusion?
See page 11 of: IRS Pub 523
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