Hi,

I have a client getting ready to sell a home that she partially lived in and rented out. She lived in the basement for the last 5 years and rented the upstairs portion at the same time. They shared the utilities but had two different entrances. Do you think she can take the full $250,000 exclusion or does she need to exclude the top half since she did not live in it? I was a little confused by the examples in publication 523 so thought I might ask. 

Thanks