Capital gains exemption

[Richard Townsend]

I rented out my primary residence for the past two years, but lived in it for the three years prior to that. The tenant has moved out, and now I am considering selling it.

Does the fact that it was recently a rental impact the capital gains exemption for homeowners of up to $250k ($500k if married)?

[Ashish Acharya]

Originally posted by @Richard Townsend:

I rented out my primary residence for the past two years, but lived in it for the three years prior to that. The tenant has moved out, and now I am considering selling it.

Does the fact that it was recently a rental impact the capital gains exemption for homeowners of up to $250k ($500k if married)?

 You are eligible for the exemption. You only need to pay unrecaptured 1250  depreciation tax. It is taxed at your ordinary rate capped at 25%.

Basically all the depreciation you took in last two years times the ordinary rate, roughly.