Hal_Al
Level 15

Investors & landlords

Don't report it as the sale of a rental.  Report it as the sale of your main home.  You will get the full exclusion (not 2/5) if it was you home for 2+ of the last 5 years.  Rental time after being your residence does not count against you.  But you will have to enter (pay tax on) the depreciation recapture.