An exemption is offered for the first $50k of Florida source net taxable which helps a lot of small businesses. 

Not exactly:If you moved out in 09-14 and you move back in now, until 09-19, that year up until 09-14 drops off as it wouldn’t be within 5 years.Also, since you lost the 121 exemption in 09-17, if you moved back in for the 2 years you’d need, you wouldn’t get the full exemption.....it would be prorated based on the number of years you did occupy verses those you didn't.In your case, at 09-20, it would be about a 2/3 exemption (8 years verses 4).Also important, the 121 exclusion only applies to the Half you lived in.....the other half is treated like an investment property.You’re also going to have depreciation recapture on the other half, plus your half while it was a rental.  

Forgot to mention.....usually when zoning changes the “non conforming use” is grandfathered in with some restrictions.....if vacant for a certain amount of time or if destroyed, the exemption for being grandfathered in goes away.

See if you meet the requirement and get an exemption.

My question was whether an accessory structure (NOT dwelling unit) triggers this requirement.As another aside, yes there is a permit exemption for storage buildings below 120 sqft (that are NOT on a hillside or in Fire District 1), but it still has to comply with all zoning and other regulations.

Know that taxes are higher without a homestead exemption.

Hi for those of you that live in a multi unit (1-4 units)  I was wondering how you take the owner exempt cap gains writeoff ?

@Susan O.Non-qualified use is the period of time as a rental (not qualifying as your primary residence).Qualified use is the period you lived in it (qualifying as your primary residence)Your scenario would probably shape up into something like this...Daughter rents for  - 3 years (non-qualified use)You live in it for  -      2 years (qualified us)Total time owned -    5 yearsAmount of exemption available for primary residence - 40% (2/5ths) of the gain up to the $250K limit for you.Plus you recapture all depreciation.And don't forget that a property you convert into your primary residence that was the subject of a 1031 exchange has an overall holding requirement of 5 years. 

Our condo income and expenses are all in the exempt category and nothing is taxable. 

The reason he wants me to be an S Corp is based on my exemptions, as I mentioned.