Tax Implications for Renting a personal home

[Curtis Maag]

i've been in my home for 4 years.  I'm debating whether to sell it or rent it.  If I rent it and then go to sell it x years down the line, do I still have to pay capital gains since i've lived in for 2+ years?  Or do I have to immediately sell it to avoid the capital gains tax?  thanks 

[Wayne Brooks]

You can rent it out, but for less than 3 years (the rule is lived in it for “at least 2 of the last 5 years”) and still get the cap gains exclusion.  You will be claiming depreciation as a write off (about 3% of your basis in the house per year) while it is rented, and will have to claim that deducted depreciation back as income when you sell though.