I searched for this specific question but didnt find any answers so forgive me if this has been answered before and I have just overlooked it.
If someone owns their home for 5 years and lives in it for any 2 years of the 5, the IRS gives a capital gains exclusion when that person sales that home. Does this exclusion of capital gains also apply to income limits of IRA/Roth IRAs? For example, Lets say its 2022 and a single person makes $50,000 from their job. In 2022 they also sell their home for a $150,000 profit. That would put them at making $200,000 for that year which would be well over the $144,000 IRA income limit for 2022. Would they still be able to contribute $6,000 to their IRA/Roth IRAs since the $150,000 profit from the house is a capital gains exclusion or does that $150,000 get included as income even though the IRS treats it as a capital gains exclusion?
