How can we exclude cap gain of a primary home sale even when a portion of the living area (not a duplex) was rented out? IRS pub.523/pg 11says cap gain is excluded

[suelee7070]

We can't find out how TurboTax will let us exclude the cap gain but still properly report the rental income/expenses for the rented portion of the living area. We read pub. 523/pg 11 and it specifically fits our situation for continuing to exclude cap gains despite having rented part of the property.  Thank you.

[AmeliesUncle]

You will still have capital gain based on the depreciation that you took.

Or is it taxing more than just the depreciation?

[ColeenD3]

The depreciation will be recaptured as ordinary income. You may have had a gain over the exclusion. Double-check your entries, as well.

[Carl]

I assume you are referring only to the recaptured depreciation. Understand that the depreciation you are required to recapture and pay taxes on, is *not* excluded from capital gains, no matter what. There's just no exception for that.  You *will* be taxes on the recaptured depreciation.