Thank you for your time, however, your post still did not help for my question....
I always report the rental income, cost/expense, and take the depreciation for the rental portion of the house. I also understand that there is a "Depreciation recapture" when I sell the house. However, the question I need help is below:
1. My wife and I purchased the house
2. I setup an LLC to manage the renting (50% of the house) on Airbnb -- but my wife and I own 100% the house and living in the house, (LLC does not own any portion of the house)
3. Report all income and cost and expense, and take depreciation for half of the house - of cause.
4. After few years, sell the whole house with a total $500,000 capital gain after consider Depreciation recapture for the half of the house.
5. Since the LLC was running Airbnb for half of the house, can we still get the $500,000 capital gain tax exemption when we sell the house?
