However, you won't qualify for the exclusion of capital gain on the portion of the house that was rented.
I'm not sure that's all inclusive and accurate. If you rented the room out for the last two years you owned it, and for at least 2 years prior to that it was your primary residence, then it meets the "primary residence for 2 of last 5 years I owned it" test, and therefore qualifies for the capital gains exemption.
Please by all means, let me know and correct me if I'm wrong on that.
