Padsplit started up in Arizona at the beginning of 2023.Co-living or rent by room is not new to Arizona. 

Only herself will be living in the new residence and daughter in college probably spends summer and weekends in the residence so it is not a large household.  

For example, if I were to stop renting out a portion of the home, and live in the entire home for the year before sale, would that allow the entirety of the profits to fall under the 250k tax free limit?

Currently living with my girlfriend/no kids in San Diego.

I live in Murrieta, moved here last July from the East Coast, work in Oceanside, ride motorcycles, love ramen and whiskey, and am always learning and trying new projects.

I lived in one of the units for awhile and then started wholesaling and fixing and flipping some homes.

@Michael Keffer I've lived in Beaufort for 12 years and currently half owner of an STR here and my business partner owns a second, both self managed.

Where are you living now? 

If you have lived in a home as your primary residence for two out of the five years preceding the home's sale, the IRS lets you exempt $250,000 in profit, or $500,000 if married and filing jointly, from capital gains taxes.

The listing has been live for 180 days and has yet to sell through my real estate agents.