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I am getting conflicting information.  We had a home that we lived in from 2004 to 2010.  Due to a PCS, we rented if from 2010 to 2015.  We would qualifty for the capital gains exclusion for home sales.

 

HOWEVER, I have been told that we have to pay capital gains on the % of time that we had it as a rental.   During that time I took depreciation on the property.  Has anyone sold a home that they once lived in and then rented?  How did you handle the depreciation and capital gains?

 

Thanks!