Selling house you house hack

[Tyler Vargha]

Hi, 

I am wondering if you house hack a house (single family and renting basement with separate entrance) and then sell the property and move into a new property that is also your primary residence, is the sale considered as a rental property or as a primary residence property. Is the only way to be exempt is through the 1031-exchange in this case or does it follow normal exemptions that couples can right off for capital gains? 

[Jana Crum]

Hi @Tyler Vargha as long as you have lived in the property as your primary residence, even if you house hacked it, the sale of that property would be the sale of your primary residence. If you lived in the house hack for 2 of the last 5 years then you will not have to pay capital gains tax on the sale of the house hack. Hope that helps!