Capital Gains Taxes when selling a primary home with ADU

M

Maserson

Active member
Anybody know current rules about selling a primary home with an ADU?  Does the ADU need to be empty x2 years to fulfill the 2 out of 5 year criteria?
 
Maserson said:
Anybody know current rules about selling a primary home with an ADU?  Does the ADU need to be empty x2 years to fulfill the 2 out of 5 year criteria?
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Has rental income been reported for the ADU? Is the ADU sitting on the same lot as the home?  If no to the first question and yes to the second question then the same $250k/$500k gain exemption apply to both units and the basis of the property is increased by the cost to build the ADU. 
 
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