If I sell my home that I lived in for 24 months out of the last 5 years but it was rented the rest of the time am I excluded from cap gains?

[beetsfam5]

It was claimed as investment for the last few years but was originally the primary residence.

[Vanessa A]

No, you are not excluded from the home sale exclusion because it was a rental.  If you lived in the home for 2 out of the last 5 years and have not claimed the home sale exclusion in the last 2 years for another home, then you would still be able to claim the home sale exclusion even though it was rented out the rest of the time.  

You will need to add back the depreciation you claimed over the last few years as a depreciation recapture which will decrease your basis and increase your profit on the sale.
 

[Hal_Al]

Q. If I sell my home that I lived in for 24 months out of the last 5 years but it was rented the rest of the time am I still allowed the home sale capital gains exclusion?

A. Yes. 

Furthermore, if the entire rental time occurred after you moved out, you do not have to prorate your exclusion amount.  However, you do have to "recapture" (include as income) the depreciation you claimed or should have claimed. 

The TurboTax (TT) interview goes smoother if you enter the sale as a home sale and not as the sale of rental property.  You will make a single manual entry for the depreciation amount.