Am I Crazy? IRS tax rule for claiming full exemption even if I have been renting room
It's pretty clear to me that if I sell my house where I have been renting 3 out of the 4 rooms for several years (but living in the 4th room), I can still claim the full $250,000 exemption (but I will get taxed on the depreciation), but some tax professionals are telling me different. What's going on?
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The only laws are ownership and use. If you own it for two out of the last five years and you lived in it for two out of the last five years full-time as your primary address you're eligible for it.